BBI = (3-day average price + 6-day average price + 12-day average price + 24-day average price) ÷ 4 From the calculation formula of the long and short index, it can be seen that the values ????of the long and short index include It represents the partial weight of the moving averages of different days, which is a value that reaverages the moving averages of different days, thus representing the "interests" of each average line respectively. In fact, the long-short index is a special product of the moving average principle and plays the role of a watershed between long and short.

Application rules:

1. If the stock price is above BBI, it is considered a long market.

2. The stock price is below BBI, which is regarded as a short market

3. Calculate the long-term EBBI indicator:

EBBI=(6-day EMA+18-day EMA+ 54-day EMA + 162-day EMA) ÷4

EBBI application skills

1. The biggest advantage of EBBI is that it can capture long-term dark horses in time. When the stock price is in the low zone, BBI will be A downward and upward breakthrough of EBBI is a long-term buy signal. The standard for judging the effectiveness of the upward penetration depends on whether the BBI is powerfully upward from a position far lower than the EBBI, or whether the BBI gradually rises and then is accidentally higher than the EBBI during the bonding process with the EBBI. In the case of the latter, the upward penetration is ineffective. Although this buy signal does not guarantee that the stock bought will 100% become a big dark horse, looking at all the big dark horses in the Shanghai and Shenzhen stock markets, almost all of them issued buy signals at low levels with BBI crossing EBBI.

2. The advantage of EBBI is not only a buy signal, but also its trend judgment. If BBI is always above EBBI, it means that the stock price is in a strong state and you can continue to hold shares. This is a stable ride. A powerful tool for dark horses. If BBI is always below EBBI, it means that the stock price is in a weak state and you can continue to hold the currency.

3. Although EBBI is an excellent indicator, it is not omnipotent. It is only a tool that provides you with convenience in certain aspects. Like all tools, it can only exert its strengths in specific aspects. , just like you cannot use a spoon to chop vegetables or a knife to stir-fry vegetables, EBBI cannot be used to study and judge short-term trends. It is very suitable for long-term investors.

4. EBBI’s analysis and judgment of sell signals is also one of its shortcomings. Do not simply infer that BBI crossing EBBI above is a long-term buy signal, and BBI crossing EBBI below is a long-term sell signal. If this is the case , it’s a big mistake. When BBI crosses EBBI, the stock price has already lost half of its value. If EBBI is always in the process of increasing, you can hold shares firmly. If EBBI turns a corner, you must be careful. It may not be a head at this time, but it must be confirmed by combining other indicators.

The above can be found in BBI’s Baidu Encyclopedia