Sunday, August 31, 2014

To share price volatility gap, fixed into a range of models. MASS index spreads daily volatility ex


Chin-Feng Lee Jung Jin
MASS = Σ (AHL BHL)
MASS observed graph indicators, special attention must be its curve "protruding part." When the gap between high and low stock price volatility expansion, or stock price momentum indicator rapidly ejected, will cause the curve to form a "convex part."
To share price volatility gap, fixed into a range of models. MASS index spreads daily volatility exponentially smoothed average of the manner in order to observe the extent of its wave narrow bandwidth. Generally, when MASS than 25 representatives spread volatility expand. When MASS less than 25, representing 20 a narrow spread volatility. However, the so-called "convex part" is often spread volatility caused significant expansion moment. Due to the impact force is too violent, causing MASS curve up through 27, suggesting that price band width has been expanded to a certain limit, increasing the likelihood of near-term reversal.
MASS curve of less than 25 stocks, are generally more non-investment profits.
Long-term 20 stock price in the doldrums, up and down the narrow volatility, 20 investors are not durable disc, dumped shares in order to escape. This market after caring people patiently collecting, stock chips gradually fall in the hands of a few people. Since selling daily reduction, derived demand is greater than supply, causing 20 the stock price to rise slowly. Part of the flexible investors, seen signs of recovery from the dead stock, have joined the camp of the buyer, so that the stock price rises abruptly increased. When the stock has low area some distance from the excitement of the investing public, could no longer withstand the temptation to buy a lot of money flock. This bottom reversal of form, requires delicate observation, when stock prices slightly curved to form, they should be alert to intervene. However, due to a prolonged slump in the stock price relationship, the only stock investors often have been ignored, if slightly inattentive, it is easy to miss the opportunity to reverse intervention.

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