But in the trend or unilateral trend, it is very dangerous to deviate, because there are deviations after the deviation, not only deviations, but also repeated deviations. Even if a deviation is right, it is only a rebound of the trend. To make good use of indicators, we must solve the deviation problem, solve the deviation, false signals and other problems, and the remaining true signals will be easy to operate.
What I want to tell you today is MACD, the king of indicators. This indicator is no stranger to us, and many friends have been using it repeatedly. If you want to use an indicator well, you must first understand the details of this indicator, and the principle will not be explained. You can find it online.
Let me talk about the composition of MACD first:
1 has a central axis with a value of 0.
2. There is a curve that swings up and down around the central axis.
3. There are two pillars.
Intuitively speaking, these three elements constitute our MACD indicator.
Say deviation first, then there will be deviation. Deviation only gives a signal and does not represent the reversal of the trend. Moreover, there are many false departure signals. On the road of deviation, you may inadvertently embark on the road of contrarian operation. Since trading with indicators, it is necessary to use indicators to judge trends, just like the K-line, Dow and Wave mentioned above. Only by judging trends and shocks can we have better operability and usability in trading. Or use the basic characteristics of MACD to find information related to trends:
1, the central axis, that is, the 0 axis. This is the most intuitive signal to distinguish how long and short the market is. Above the central axis is a long territory, and below the central axis is a short territory. Simply put, there are bulls above the central axis and bears below it.
2, curve, this curve is in MACD, the position of the curve also has several States, and there are multiple heads above the central axis. Bears below the central axis fluctuate and oscillate around the central axis.
3. pillars. In the bullish trend, the column inclines upward, while in the bearish trend, the column inclines downward.
Judging the trend through the information given in the above three points is very simple.
Trend judgment:
Above the central axis are bulls, below the central axis are bears.
Above the central axis, the column inclines upward and the bulls are the strongest; Under the central axis, the column inclines downward, and the short position is the strongest.
Trading signal: in the bullish trend-the curve crosses the column to do more, and in the short trend-the curve crosses the column to short.
In fact, these are simple contents, but the simpler things are, the easier they are to be ignored.
Look at the first picture and judge how empty the central axis is. Through the chart, we can intuitively see that even friends who have never been exposed to trading can clearly see how free they are.
There are many ways to judge the trend. Most losses are not in the trend, but in guessing the top and bottom. In the process of guessing, it is easy to trade against the trend. After losing money or being quilted, it is easy to add positions and ignore risk control. Judging the direction of the trend is the key to your future profitability. No matter how you judge the direction, at least for a period of time, the price will follow the direction you judge. With direction, there will be space and benefits.
You have seen many complicated trend judgment methods. Today, I tell you that the simplest and most intuitive answer is the MACD central axis, without any technical analysis. Then follow the trend, even if it is a shock, there will be room for profit for a while.
After determining the direction:
In the bullish trend, the curves cross and the pillars tilt upward, so you can do more and only do more.
In the short trend, the curves cross, the column leans downward to short, and only short.
Some friends may want to ask, have you deviated? Will this encounter deviation? In fact, this comes to the point mentioned at the beginning. Deviation is only within the trend, that is, looking for deviation against the trend.
Follow the trend and filter out the deviation. The usage of macd actually returns to the usage of the simplest and most initial state indicators. These simple and easy-to-use things are familiar to everyone, but they are all ignored. In actual transactions, subjective things are increasingly replacing the objectivity given by indicators. To make good use of indicators, we must respect the trends and directions reflected by indicators and act according to the signals.
That's enough for MADC. The trend direction given by the macd axis is obviously not the highest and lowest point of the trend, but there is a stable space for us to make profits, which is enough. Stable space is the most important thing we need to pay attention to in trading.