In the stock market, different indicators play different roles, and the biggest feature of DMI is that it can accurately let investors know the future trend of the stock market. The following is the usage and trading principle of 202 1 year dmi index collected by Bian Xiao _DMI index. I hope I can help you.
Dmi indexing application
DMI, also known as trend indicator, is considered as one of the most effective and practical technical indicators in today's indicator usage, so it can be used in today's market for a long time. Usually investors like to regard it as an important indicator together with other indicators.
What is the trading principle of dmi indicators?
1 and +DI cross DI, buy; 2. When +DI crosses -DI, sell; 3. When ADX turns around above 50, the market trend of counter-table will end; 4. When 4.ADX falls below +DI, it is not appropriate to enter the market for trading; 5. When ADXR is between 20 and 25, it is appropriate to use TBP and its reaction secret as trading reference.
The method of using DMI index
The basic application of the system shows that the index effect is ideal when the market trend is obvious. Among them, PDI stands for rising direction line, MDI stands for falling direction line and ADX stands for trend average line. DMI indicator * * * has four lines: +DI(PDI),-di (MDI), ADX and ADXR.
1, PDI line breaks through MDI line from bottom to top, indicating that there are new bulls entering the market, which is a buying signal.
2.PDI line falls below MDI line from top to bottom, indicating that there are new short positions entering the market, which is a selling signal.
3. When the ADX value continues to be higher than the previous day, the market will maintain the original trend.
4. When the 4.ADX value drops below 20, the market atmosphere is consolidation when moving horizontally.
5. When the ADX value changes from an upward trend to a downward trend, it indicates that the market is about to reverse.
Detailed explanation of using DMI index
1, when the rising (falling) trend of the market is quite obvious, buy when +DI crosses -di upwards, and sell when +DI crosses -di downwards.
2. When the ADX value falls below 20 and appears sideways, the stock price is in a small consolidation at this time. When ADX broke through 40 and rose significantly, the upward trend of stock price was established.
3. If ADX reverses downward above 50, whether the stock price rises or falls at this time indicates that the market is about to reverse.
4. When the distance between the four lines narrows, it indicates that the market is in a consolidation state, and then the indicators are distorted.
Four-line dmi indicator
The basic principle of DMI index is to find out the role of the stock price in the process of rising and falling, judge the long and short power, and then find the equilibrium point of buyers and sellers and the cyclical process of stock price fluctuation under the interaction of both parties. In most indicators, different analysis data are calculated according to the trend of daily closing price and cumulative ups and downs, but the disadvantage is that the fluctuation range between daily high and low points is ignored.
As for dmi, what do the four lines of green, blue, red and yellow stand for? They respectively represent four states: buying, selling, holding shares and holding money. The trend indicator DMI (distinguished by four colors: white, yellow, red and green) is reflected in the four lines of +DI(PDI), -DI(MDI), ADX and ADXR, which are the same whether it is the market or the stock.