Elements graphs
Elements graphs
In the stock market more than anything want to know two things – when will the peak of the bull market and when completed the bottom of a bear market.
As with everything else in the analysis of market shares, this is easier said than done. That is why a person who can accurately interpret graphs, to determine where the market at any given moment holds the key to successful trading and investing.
Prognostic value of graphs – their focus on supply and demand, the volume of trade – at best lifted and lowered prices. Charts will tell an experienced person, whether the market, a group of shares, or some separate action to increase, decrease or remain in place.
Richard D. Vaykoff believed that the use of graphs mechanically, without thinking, is likely to fail than to succeed. Construction of diagrams or imaginary geometric patterns on the charts or the use of an arbitrary system of rules for their formations is unacceptable in the method Vaykoffa. Instead, investors Vaykoffa study charts to reveal the motives of market movements, to interpret the behavior of the shares.
Vaykoffa method relies on three basic types of graphs: vertical lines (bars), drawings of figures (Tic-tac-toe), and graphics waves, which were developed Vaykoffom in 1916 during his career analyst and trader. Each chart provides unique information that complements the other kind of symbiosis.
Short, vertical graph tracks the price and volume. They indicate the direction of price movement, defining the periods of buying, selling or closing position, as well as where to place stop orders.
Graphs Figures also show the price and volume, but the abbreviated way. They point to the best opportunities to take profits, describing the distance that must pass a separate action, a group of stocks or the market.
Charts Wave indicate psychological factors for the purchase or sale. Charts Wave considering the market behavior at critical points throughout the junior, intermediate and the main trend and show its turning points.