Composition of stock duck head trend.

Stock duck head trend, is the stock's short-term averages turn back, and long-term averages bonding cross, making a duck head pattern.

A complete duck head pattern needs to be composed of three parts:

Duck neck: short-term SMA and long-term SMA are slanting upward.

Duck Head: The short-term SMA is turning down and stepping back on the long-term SMA.

Duckbill: the short-term averages are turning up again, signaling the start of a new uptrend.

The meaning of the stock old duck head trend.

The old duck head trend is a classic application of mean investment analysis, investment marshal in the column article said mean investment see is "trend or finishing".

If the current market is in the "trend" state, investors should follow the trend, follow the general direction;

If the current market is in the "finishing" state, investors should be high throw low suck, pay attention to resistance and support points.

We will analyze the duck head pattern:

First, the duck's neck slanting upward, that is, the long and short-term averages are in the "trend" state;

Then the short-term averages back to step on the long term, to make the duck's head; the meaning is that the short-term trend from the trend to the finishing touches, and the long-term trend of the trend to maintain the trend remains unchanged;

Finally, the short-term averages are once again upturned, making a duck's beak, which means that the short-term trend from the finishing breakthrough again into the trend, and is about to open a new round of upward movement.

So, the core mystery of the stock duck head lies in the average pattern "trend - finishing - trend" change process.

The method of operation of the stock duck head.

If the investor did not hold the stock before, then when the final duck's beak is made, that is, finishing to trend establishment, looking for the opportunity to build a position, and decisively participate in a new round of trend market.

If the investor held the stock's bottom position, that is, has participated in the previous trend, then the short-term averages turn, that is, the trend to finishing time, you can properly close the position or reduce the position, waiting for the duck's mouth signal is given.

Why is it possible to continue to rise behind to reduce the position?

Because the trend is unpredictable, before the market really go out, we can not predict, finishing the market to continue for how long, and do not know the result of the finishing is actually up or down.

So, you should try to avoid participating in the consolidation in the trend market.

Summary

The stock duck head, is the use of averaging system investment in a pattern, which represents the averaging pattern from the "trend - finishing - trend" change process.

Average investment is to look at the "trend or finishing", in the trend of the market, the more averages, averages of the time parameter is greater, the trend of the market strength is also stronger, the less likely to reverse.