1. When DIF breaks through DEA from bottom to top, a golden cross is formed, that is, white DIF is crossed by yellow DEA. Or the bar line (green bar line) is shortened, which is a buy signal.
2. When DIF breaks through DEA from top to bottom, it forms a dead fork, that is, white DIF wears yellow DEA. Or the bar line (red bar line) is shortened, which is a sell signal. ?
3. Top deviation: When the stock price index rises wave after wave, and DIF and DEA do not rise synchronously, but fall wave after wave, which forms a top deviation from the stock price trend. It indicates that the stock price is about to fall. If DIF crosses DEA twice from top to bottom at this time, forming two death crosses, the stock price will drop sharply.
4. Bottom deviation: When the stock price index goes down wave by wave, and DIF and DEA do not go down synchronously, but go up wave by wave, which forms a bottom deviation from the stock price trend, indicating that the stock price is about to rise. If DIF crosses DEA twice from bottom to top, forming two golden crosses, the stock price will rise sharply.
MACD indicator is mainly used to judge the long-term upward or downward trend of megatrends. When the stock price is in the market or the index fluctuation is not obvious, the MACD trading signal is not obvious. When the stock price fluctuates greatly in a short period of time, because the MACD moves quite slowly, it will not immediately generate a trading signal to the stock price change.
MACD mainly uses the long-term and short-term smooth moving averages to calculate the difference between them as the basis for judging market transactions. MACD indicator is a trend indicator based on the construction principle of moving average, which smoothes the closing price of the price (calculates the arithmetic average). It mainly consists of positive and negative difference (DIF) and difference average (DEA), in which positive and negative difference is the core and DEA is the auxiliary. DIF is the difference between fast smma (EMA 1) and slow smma (EMA2).
In the existing technical analysis software, the commonly used parameters of MACD are fast smma 12 and slow smma 26. In addition, MACD has an auxiliary indicator bar. In most technical analysis softwares, columnar lines are colored, green below axis 0 and red above axis 0. The former represents weakness, while the latter represents strength.
Let's talk about the basic principles that should be followed when using MACD indicators:
1. When the DIF and DEA are above the 0 axis, it is a bull market, and when the DIF line crosses the DEA line from bottom to top, it is a buy signal. When the DIF line crosses the DEA line from top to bottom, if the two lines are still running above the 0 axis, it can only be regarded as a short-term decline, and the trend inflection point cannot be determined. Whether to sell or not at this time needs to be judged by combining other indicators.
2. When the DIF and DEA are below the 0 axis, it is a short market. When the DIF line crosses the DEA line from top to bottom, it is a sell signal. When the DIF line crosses the DEA line from bottom to top, if the two lines are still running below the 0-axis, it can only be regarded as a short-term rebound, but the inflection point of the trend cannot be determined. At this time, whether to buy or not needs to be judged by combining other indicators.
3. Columnar line contraction and amplification. Generally speaking, the continuous contraction of columnar lines indicates that the strength of trend operation is gradually weakening. When the color of the column line changes, the trend determines the turning point. However, when using some short-term MACD indicators, this view cannot be fully established.
4. Form and deviation. MACD indicators also emphasize morphology and deviation. When the DIF line and MACD line of MACD indicators form a high bearish pattern, such as head and shoulders, double heads, etc. We should be vigilant; When the morphological MACD indicator DIF line and MACD line form a low bullish pattern, you should consider buying. When judging the shape, DIF line is the main one and MACD line is the auxiliary one. When the price continues to rise and MACD indicators come out one after another, it means that the top deviation appears, indicating that the price may turn around in the near future. When the price continues to fall, but MACD indicators come out one after another, it means that the bottom deviation appears, indicating that the price is about to end the decline and turn to rise.
5. The index of cowhide market will be distorted. When the price does not run from top to bottom or from bottom to top, but keeps running horizontally, we call it cowhide market. At this time, a false signal will be generated in the MACD indicator, and the intersection of the DIF line and the MACD line will be very frequent. At the same time, the retraction of column lines will occur frequently, and the color will often turn from green to red or from red to green. At this point, the MACD indicator is in a distorted state, and its use value will be reduced accordingly.
The curve shape of DIF is used for analysis, mainly using the deviation principle of indicators. Specifically: if the trend of DIF deviates from the trend of stock price, it is time to take concrete action. However, the accuracy of guiding the actual operation according to the above principles is not satisfactory. After practice, exploration and summary, the accuracy is greatly improved by comprehensively using 5-day, 10 moving average, 5-day, 10 moving average and MACD. ?
Detailed description of KDJ indicators
Stochastic oscillator, also known as KDJ indicator, was pioneered by George Ryan and was first used in the futures market. The random indicator uses two lines of% k and% d, which combines the advantages of momentum concept, strength index and moving average in design. In the calculation process, we mainly study the relationship between the high and low price points and the closing price, reflecting the strength of the price trend and the phenomenon of overbought and oversold. Its main theoretical basis is: when the price rises, the closing price tends to be close to the upper end of the price range of the day; On the contrary, in the downward trend, the closing price tends to be close to the lower end of the price range of the day. In the stock market and futures market, before the market trend turns, most of them will close at high prices every day, and when they fall, the closing price will often close at low levels. Stochastics fully considers the random amplitude of price fluctuation and the calculation of short-term fluctuation in its design, which makes its short-term market measurement function more accurate and effective than the moving average, and more sensitive than the power index in short-term overbought and oversold market prediction. Therefore, the index is widely used by investors.
Stochastics compares the correlation between price range and price closing price (closing price) in a given period. The oscillation index is displayed by double lines. The main line is called %K line. The second line is called %D line, and its value is the moving average of the main line %K, and% k is usually shown as a solid line, while %D line is shown as a dotted line.
The value of KDJ index
1
Value range: in KDJ indicator, the value range of K and D is 0- 100, while the value range of J can exceed 100 and be lower than 0, but in analysis software, the value range of KDJ is 0- 100. Generally speaking, in terms of sensitivity, J value is the strongest, followed by K value and D value is the slowest, while in terms of safety, J value is the worst, followed by K value and D value is the most stable.
2
Overbought and oversold signal: According to the value of KDJ, it is divided into several areas, namely overbought area, oversold area and wandering area. According to the general classification standard, three values of K, D and J below 20 are oversold areas and buy signals; If the values of K, D and J are above 80, it is an overbought area and a selling signal; The values of k, d and j are between 20 and 80, so it is advisable to wait and see.
three
Comparison of strength in the sky: generally speaking, when the values of K, D and J are around 50, it means that the strength of both sides is balanced; When k, d and j are all greater than 50, it shows that many forces are dominant; When the values of k, d and j are less than 50, it means that the air force is dominant.
What is KDJ curve crossing?
1
As shown in the picture, there is a golden fork in the circle and a dead fork in the box.
The intersection of KDJ curves can be divided into two forms: golden intersection and dead intersection. In a complete process of foreign exchange fluctuation, there will be two or more "golden intersections" and "death intersections" on the K, D and J lines of KDJ indicators.
three
The position of the golden fork should be relatively low, especially in the oversold area. The lower the better. When the exchange rate is consolidating at a low level for a long time, and the K, D and J lines are all below the 50 line, once the J line and the K line break through the D line almost at the same time, it indicates that the stock market is about to strengthen, the decline of the exchange rate has ended, and the upward decline will stop. You can start buying foreign exchange and open positions in the medium and long term. This is a form of KDJ indicator "golden cross".
four
Number of intersections. Sometimes the K-line and the D-line have to cross several times in the low position, and at least two crossings are buying signals. The more, the better. When the exchange rate is consolidating during a period of rising, and the K, D and J lines are hovering around the 50-line, once the J line and the K line break through the D line again almost at the same time, the trading volume will be released again, indicating that the stock market is in a strong position and the exchange rate will rise again. It is possible to buy foreign exchange or hold shares, which is a form of KDJ indicator "golden fork".
five
K-line intersects with D-line when the head is up, which is much more reliable than crossing with D-line when it is still falling. In other words, the right intersection is better than the left intersection. When the exchange rate rises for a long time in the previous period and the exchange rate rises greatly, once the J-line and the K-line break through the D-line at a high level (above 80) almost at the same time, it indicates that the stock market will soon turn from strong to weak and the exchange rate will plummet. At this time, most foreign exchange should be sold rather than bought, which is a form of KDJ indicator "death cross".
six
The forming condition of the dead fork is opposite to that of the golden fork, and the same as that of the golden fork, which conforms to the right cross principle. When the exchange rate falls after a period of time, and there is no motivation for the exchange rate to rebound upward, and various moving averages exert strong pressure on the exchange rate, when the KDJ curve briefly rebounds to the vicinity of the 80th line, but fails to return above the 80th line, once the J line and the K line break through the D line again, it indicates that the stock market will once again enter an extremely weak market, and the exchange rate will fall, so it is another form of the "death cross" of KDJ indicators.