As a tool of stock market investment analysis, technical analysis has two major functions. The first is to find investment opportunities in the stock market, and the second is to protect the investment income of the stock market from losses. In the operation of the stock market, MACD indicators play a far greater role in protecting the interests of investors than in finding investment opportunities. As a means of medium and long-term analysis, MACD indicators produce cross signals that lag behind short-term transactions. MACD indicator, known in Chinese as exponential smoothing average of similarities and differences, belongs to the general trend indicator and consists of five parts: long-term moving average MACD, short-term line DIF, red energy column (bulls), green energy column (bears) and O axis (long-short dividing line). It uses the intersection of short-term moving average DIF and long-term line MACD as a signal. The cross signal generated by MACD indicator is slow, but it is effective as a corresponding trading strategy. The specific use method is as follows.
1. When the DIF and MACD are above the O-axis, it shows that the general trend is in a bull market, and investors should take shareholding as the main strategy. If DIF crosses MACD from bottom to top, it doesn't mean it is a buy signal. At this time, the market trend is already a short-term high point, and the strategy of selling high and sucking low should be adopted. In general, the callback low point will appear on the second or third day after the cross signal is generated. At this time, you can buy again to achieve the purpose of sharing the cost. If DIF passes through MACDM from top to bottom, it means that the rising market in this band has ended. Usually, after the cross signal is generated, there will be a decent rebound in the market to confirm the formation of short-term peaks, and investors can take the opportunity to close their positions. In the subsequent adjustment, stochastics (DKJ) and strength index (KSI) were used to wait for the opportunity of intervention, thus pushing down the operating cost. If DIF crosses MACD for the second time from bottom to top, it indicates that there will be a strong upward trend. After the cross signal is generated, investors should hold shares all the way until DIF crosses MACD from top to bottom again, and then clear all the stocks, so they can take their wallets home to rest. Due to the diversity of the stock market, MACD indicators often deviate from the K-line chart, which is often called bear deviation. That is to say, the K-line chart continuously touches the second or third high point in the near future, and the MACD indicator does not match the corresponding high point, but the opposite trend appears, and the vertex decreases wave by wave. This phenomenon should arouse the vigilance of investors. Because it indicates that there will be a big market crash in the future, investors should take the strategy of clearing their positions, so that their stocks can avoid being quilted and their funds can avoid losses.
2. When both DIF and MACD are below the O-axis within 7 days, it means that the current trend belongs to the short market, and investors should take holding currency as the main strategy. If DIF crosses MACD from top to bottom, there will be an adjustment low point. Under normal circumstances, there will be a wave of rebound afterwards, which is a good opportunity for investors to close their positions. At present, there is no short selling mechanism in China stock market. Therefore, once the stock market enters the short market, the best strategy for investors is to leave the market and wait and see. Investors can increase the value of their funds when the stock depreciates. If DIF crosses MACD from bottom to top, it will produce a recent high point, and investors should decisively close their positions. The generation of such signals is generally rebound in nature. In the short market, every rebound should be regarded as the best time to ship. In particular, if DIF crosses MACD from top to bottom for the second time, it indicates that there will be a big decline in the future. After the cross signal is generated, investors should clear their positions. Usually there will be a decline in this period, which belongs to the C wave decline in wave theory and is the most lethal one. Only by avoiding the decline of C wave can we really make money in the stock market. After the C wave in the short market, the MACD indicator occasionally deviates from the K-line chart, which is usually called long divergence. That is, the K-line chart has a second or third recent low point, and the MACD indicator has no corresponding low point, but there is an opposite trend that the bottom is higher than the bottom. The appearance of this phenomenon. It indicates that the market will reverse in the future, and investors should actively intervene, because the current market is completely risk-free.
3. When MACD indicator is used as a separate system, short-term can refer to DIF trend. If DIF falls from top to bottom and crosses the O-axis, it can be seen that the general trend may enter a short market, which indicates that the general trend will weaken and should arouse investors' vigilance. In the short-term market, investors bear more risks than returns. If MACD falls from the top to the empty O-axis, confirm that the general trend has entered the short market. Investors should adopt a wait-and-see strategy to avoid market risks and ensure the profits earned in the bull market. If the DIF crosses the O-axis from bottom to top, it can be seen that the megatrend may spread into a bull market. It indicates that the general trend will be stronger, and some funds will be involved in the operation. If MACD crosses the O-axis from bottom to top, confirm that the general trend has entered a bull market. Investors can invest heavily and actively intervene. In a bull market, the benefits outweigh the risks.
4. In the MACD indicator, the red energy column and the green energy column represent the rise and fall of long and short energy respectively. Their response to the market is ahead of the short-term moving average DIF. In MACD index, the process of energy release is a gradual process, usually gradually enlarged. Oriental philosophy emphasizes "Yang flourishes and declines". Yin Sheng is very strong. "When using the energy column, the red energy column combined with the K-line chart shows that when the K-line chart rises by nearly 90 degrees, coupled with the rapid amplification of the red energy column, it shows that the top of the general trend is near. Especially when two adjacent red energy columns are connected, the market will be more rapid. On the contrary, in the short market, this phenomenon is also true. Being familiar with this operation method will be of great benefit to investors' escape from the top and bargain-hunting.
5. In the process of using MACD indicators, there are two points to pay attention to. First of all, MACD indicators are not necessarily reliable for judging the short-term top and bottom. Only by combining the medium-term deviation rate with the ADR index in the static money dragon can we judge them. Second, it is better to use weekly MACD index analysis than daily MACD index analysis.
In short, when using MACD indicators, we must determine the attributes of the market. That is, whether the current market is bull market or short market. According to different market attributes, different operation strategies are adopted to avoid risks and ensure profits.