The most widely used futures technical indicators: moving average, stochastic index KD line, relative strength index, Bollinger channel, moving average divergence indicator, golden section, MovingAverage, STC, RSI, Bull , MACD, ibonacci.
Moving Average (MovingAverage)
The moving average is a line drawn by averaging the closing prices of several periods in the past. Unlike candlestick charts, it reflects price trends more reliably.
The following are 2 different moving averages:
Simple Moving Average (SMA) - A simple moving average is a combination of a number (n) periods (such as 5 or 10 minutes, The closing prices within each day and so on are added up one by one, and then divided by the total period n, the average value of the nth period is obtained. Then mark the average value of each period on the graph and connect it with a curve to get the n-period average line.
Smoothed Moving Average (EMA)_Since the moving average is a lagging indicator, in order to be closer to the market trend, the smoothed moving average gives a higher weight to recent data when calculating the average. This allows you to see market trends earlier.
Moving averages have many uses, mainly used to identify/confirm trends, as well as identify/confirm resistance and support levels. For example: if the fast line exceeds the slow line upward, it is called a "golden cross", which is a buy signal. When the fast line crosses the slow line downward, it is called a "dead cross" and is a sell signal.
Stochastic Index (STC)
The stochastic index is also called the KD line. It measures the position of the closing price in the highest price and lowest price range to judge the trend and enter and exit the market. point. The stochastic index coordinates are on a scale of 0-100. The K line represents the percentage of the closing price to the highest price and lowest price within a certain period of time. For example, 20 indicates the 20% position of the price in the recent period. The D axis averages the K axis.
Application of RSI
1. Generally speaking, when RSI turns downward at a high level, it is a sell signal, and when RSI turns upward at a low level, it is a buy signal.
2. When the RSI reaches an M top, you can sell, and when the RSI reaches a W bottom, you can buy.
3. When the RSI deviates from the top, you can sell, and when the RSI deviates from the bottom, you can buy.
4. RSI falling below its support line is a sell signal, and rising above its resistance line is a buy signal.
5.RSI parameters usually range from 5 to 14. An indicator line with a large parameter has a strong trend but lags in response and is called a slow line; an indicator line with a small parameter is sensitive but prone to erratic feelings and is called a fast line. If the slow line and the fast line are both upward, the upward trend is stronger; if the two lines are downward, the downward trend is stronger; when the fast line crosses the slow line, it is a buy signal; when the fast line crosses the slow line, it is a sell signal. .
Paulico Channel (Bull)
The Bullica Channel is a method invented by Dr. Bullica to judge market resistance/support levels based on standard deviation.
The channel consists of three lines. The midline is a simple moving average, usually a 20-day simple moving average. The top of the channel is the 20-day moving average plus 2 times the standard deviation, and the bottom of the channel is the 20-day moving average minus 2 times the standard deviation.
If the price is above the moving average, it indicates a "sell"; conversely, if it is below the moving average, it is a "buy".
Traders often use the Bollinger Channel to gain insight into sudden price changes, capture trend changes, identify potential support/resistance levels, and find breakthrough levels through the widening and narrowing of volatility.
Extended information:
Futures, the English name is Futures, are completely different from spot goods. Spot goods are real goods (commodities) that can be traded. Futures are not mainly goods, but goods. Certain mass products such as cotton, soybeans, oil, etc. and financial assets such as stocks, bonds, etc. are standardized tradable contracts. Therefore, the subject matter can be a certain commodity (such as gold, crude oil, agricultural products) or a financial instrument.
The delivery date of futures can be one week later, one month later, three months later, or even one year later.
A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures.
The earliest futures market in history was Japan during the Edo shogunate period. Since the price of rice at that time had a significant impact on economic and military activities, rice merchants would decide on the sale and purchase of rice stocks based on rice production and market expectations for rice.
In the 1970s, Chicago's CME and CBOT exchanges carried out a number of futures product innovations and vigorously developed multiple financial futures varieties, making financial futures the mainstream of the futures market. In the 1980s, Chicago's exchanges began to develop electronic trading platforms. At the end of the 1990s, there was a trend of mergers and acquisitions among exchanges in various countries.
In ancient China, there was a commodity credit and forward contract system consisting of grain warehouses and grain markets. During the Republic of China, multiple futures exchanges appeared in Shanghai, China, and the market was once frantically speculated.
The puppet Manchukuo government also established futures exchanges in 15 cities in Northeast China, including Dalian, Yingkou, and Fengtian, mainly engaged in soybean, soybean cake, and soybean oil futures trading.
After the founding of the People's Republic of China in 1949, futures exchanges disappeared in mainland China for decades. By 1992, a futures exchange was established in Zhengzhou, launching another wave of futures speculation. Various provinces and cities A hundred flowers bloomed. At one time, more than 50 futures exchanges were opened at the same time, exceeding the number of futures exchanges in other countries in the world combined.
China vigorously tightened supervision twice in 1994 and 1998, suspending many futures products and ordering many exchanges to cease operations. Since 1998, there are only three legal commodity futures exchanges in mainland China: Shanghai Futures Exchange, Dalian Futures Exchange, and Zhengzhou Futures Exchange. The former operates energy and metal commodity futures, and the latter two operate agricultural product futures.
On September 8, 2006, the China Financial Futures Exchange was established in Shanghai, and the first product launched was the CSI 300 stock index futures.
On June 15, 2021, the Shanghai Securities News reported that more than 50% of the varieties in my country’s futures market have a hedging efficiency of more than 90%, and more than 60% of the futures varieties have a futures-to-current correlation of more than 0.9. The futures prices of mature varieties such as copper, cotton, and soybeans have gradually become the pricing benchmark for upstream and downstream enterprises in the industrial chain.