Another difference between Western methods and this one is that the averages, as well as<br>telling you what trend you are in, are also in themselves support and resistance levels.<br>For example, in a bull market (koten in Japanese) prices may stall and consolidate on the way up. How far they are likely to pull back will depend on, among other things, where the averages lie. The nine day average should usually be the line closest to current price, and will therefore be the first area of support limiting the pull-back. The twenty-six day moving average should be further from current price levels, and is a more important area of support. Prices often haul themselves up from here in bull markets but, if they don’t, this is the first warning signal of a potential turn in trend. In a bear market (gyakuten in Japanese) the same rules hold.
正在翻譯中..