Look at the picture in the middle of the page, that is a chest shape of the
market-index. In fact,the motion of stock market consists of chest shape of
one by one. Namely, the balance of the index motion is related in a chest
shape, once,the motion breaks this chest shape upwards or downward,and will
be achieving a new balance again. We can do the index rising or falling in
an hour as a chest at the small scope,also a year as a chest at the big one.
No matter what kind of chest shape or the circulation of period, it depends
on what you see in your mind.What I think it is a key is that all questions
just become simply and clearly, when we find out the starting of index-point
motion. That following one is a chest shape of the Shanghai stock index was
made out on the basis of my Circle Picture and corresponding analysis software:
=============================1265
--------1258.13
---------------1251.25
--------1244.38
----------------------1237.50
--------1230.63
---------------1223.75
--------1216.83
==============================1210
--------1203.13
---------------1196.25
--------1189.38
----------------------1182.50
--------1175.63
---------------1168.75
--------1161.88
===============================1155
1210 is the center balance point, with 1265 for the chest top and 1155 for
the chest bottom, these are the most important points. The breakthrough of
them( in 2-3 days,the index closed above or under them with a great deal of
amount)indicates a change of the trend; The index very probably arrive the
bottom or top of a chest or it has changed over to another chest shape. The
white line is the protection of short-term in the picture, and is not more
important for the index movement;The yellow line is a small balanced.To the
breakthrough of red line indicate that the stock index will go to the pink
pair of line. In the strong power market, close to one bottom of chest is a
point for buying a share.
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