It's still about a two-step jump, isn't it?
A “triple jump chart” indicates a pattern where stock prices rise rapidly, then rise multiple times in a short period of time, and eventually show a drastic decline. Historically, when such a chart pattern appears, there is a high risk that a major decline will occur thereafter.
Some examples include the following cases:
1. The Great Depression of 1929: Stock prices rose rapidly, particularly from 1928 to 1929. Then, in October 1929, a major crash occurred.
2. 2000 dot com bubble: Stock prices of internet-related companies skyrocketed in the latter half of the 1990s, then the bubble burst in early 2000.
3. 2007-2008 Lehman shock: Stock prices soared from 2003 to 2007, followed by a financial crisis in 2008.
As can be seen from these examples, rapid stock price increases, such as the three-step jump chart, are often accompanied by a sense of overheating, and there is a tendency to increase the risk of subsequent drastic adjustments (crashes). The reason is that excessive optimism and speculative behavior of investors is increasing, and valuations that are far from the real economy are formed.
However, not every rapid rise will necessarily lead to a crash, and other factors such as economic conditions, monetary policy, and geopolitical risks also play a major role. Therefore, it is important to comprehensively analyze not only chart patterns, but also a wide range of indicators and information.
Some examples include the following cases:
1. The Great Depression of 1929: Stock prices rose rapidly, particularly from 1928 to 1929. Then, in October 1929, a major crash occurred.
2. 2000 dot com bubble: Stock prices of internet-related companies skyrocketed in the latter half of the 1990s, then the bubble burst in early 2000.
3. 2007-2008 Lehman shock: Stock prices soared from 2003 to 2007, followed by a financial crisis in 2008.
As can be seen from these examples, rapid stock price increases, such as the three-step jump chart, are often accompanied by a sense of overheating, and there is a tendency to increase the risk of subsequent drastic adjustments (crashes). The reason is that excessive optimism and speculative behavior of investors is increasing, and valuations that are far from the real economy are formed.
However, not every rapid rise will necessarily lead to a crash, and other factors such as economic conditions, monetary policy, and geopolitical risks also play a major role. Therefore, it is important to comprehensively analyze not only chart patterns, but also a wide range of indicators and information.
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トクリン : How exactly should I analyze it?
I think that's important, so please teach me.
プッチ神父♡PLTA推OP トクリン: I don't really understand either. lol when NVIDIA's stock price goes up several times over and over in 1 day, there are historical situations where it's better to make a profit! I bought it for $521, so I'll keep holding it for a long time!