The application of 1 RSI
The relative strength index reflects the strength contrast between long and short markets. The index value fluctuates between 0- 100. At about 20, it shows that the strength of the short side is very strong, almost to the extreme. There has been an oversold signal, not far from the bottom of the price, and the buying opportunity is coming; When it is near 80, it means that many forces are very strong, the market has been overbought, the short-term top is about to form, and the selling time may be coming soon. In general, when the fast line (the line with frequent fluctuations) crosses the slow line (the line with relatively gentle fluctuations) from top to bottom near 80, it is a sell signal; When the fast line crosses the slow line from bottom to top near 20, it is a buy signal.
2.MACD indicator
MACD indicator reflects the trend and intensity of market price fluctuation. The index value generally fluctuates between plus and minus 5. When the index value is positive, it means that the market is a bull market; A negative value indicates that the market is a bear market. When MACD hovers below 0 for a long time, the indicator gradually increases, and once it breaks through 0, it is a buy signal; When the fast line crosses the slow line from bottom to top at 0, it is also a buy signal. When MACD hovers above 0 for a long time, the indicator gradually decreases, and once it breaks through 0, it is a sell signal; When the fast line crosses the slow line from top to bottom above 0, it is also a sell signal.
Application of 3.3. KDJ
Stochastic indicators reflect the change of market strength, and similar to RSI, the index value also changes between 0- 100. When it is close to 20, it means that the market is oversold and not far from the bottom; When it is close to 80, it means that the market is overbought and not far from the top. Investors can adopt corresponding investment strategies according to this law.
When the express line crosses the slow line from bottom to top near 20, it is a buy signal; When the express line crosses the slow line from top to bottom near 80, it is a sell signal.
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