BASIC KNOWLEDGE OF STOCK ANALYSIS 1. TRENDLINE Down trendline is the line connecting the tops of prices in a downtrend; while up trendline is the line connecting the bottoms of price in an uptrend; trendlines reflecting different sizes can be drawn according to the scale of the trend, and describe the movement of a stock and provide operation reference. 2. PARALLEL LINE Parallel Line is two parallel lines, formed by one trendline and the other one on the opposite side of price curve. Parallel Line plays a constraint role in price movement and provides the references for stock transactions. 3. STOCK INDEX Stock Index is a kind of indicators, which is made from the index of statistics methods, and reflects price of the overall stock market or the movements and changes of the stock price; it includes the composite index which reflects the trends of the entire market and the sectional index which reflects the movement of stock price of a certain industry or stock. 4. OPEN That is opening price; the price of the first transaction is the opening price when the market opens. 5. CLOSE It refers to the price of the last transaction in the day. The Shenzhen and Shanghai Stock Exchanges prescribe the stock’s close is the average price of the entire transaction price by the volume weighted in the final minute of the day. If there are no intraday transactions, the close is the previous close. 6. PRICE LEVEL It refers to the movement unit of the trade price. And the level of stock price depends on the difference of the market price. More information Join here …
Posted on: Thu, 25 Jul 2013 06:47:19 +0000
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