As a technical analysis method, MACD indicator has been recognized by investors. However, few people know how to use MACD index to make the investment income reach the best level. The following is a small series on how to use MACD indicators to grasp stock trading points. I hope I can help you.
How to use MACD index to capture stock trading points?
Capture the best trading point by MACD
Here, "big" and "small" refer to the big or small green column and the big or small red column of MACD. In operation, I generally turn a blind eye to the two white and yellow curves of DIF and DEA (some software is MACD), and only pay attention to the changes of red and green columns.
High spirits, then decline, and three exhausted. In the stock market, whenever the head and bottom are formed, the market will provide two or more opportunities (entry or exit). After "big red" comes "little red" and after "big green" comes "little green".
When an aggressive downward trend or an aggressive upward trend begins, we should first avoid its momentum and stay on the sidelines. In other words, after a wave of decline, when the stock is at the lowest price, a wave of "big green columns" appears on the MACD. First of all, don't consider entering the market, wait for the first wave of rebound (red column appears). When MACD bottoms out for the second time, a "small green column" appears (the green column is obviously smaller than the big green column in front). When the small green column flattens or contracts, it means that the downward force has been exhausted, and this is the best buying point, which is called buying small (that is, buying on the small green column).
The same is true of the obvious rise. When the first wave is pulled up (red column appears on the MACD), don't consider shipping, but after the first Bora comes back, when it rises again for the second time, "red column" appears on the MACD (the red column is obviously smaller than the previous red column), indicating that the upward momentum is insufficient, so it is necessary to consider leaving for shipment. It's a small sell.
In other words, when the market "gathers", whether it is rising or falling, it should remain on the sidelines; When the market "falls again", the party will consider entering the market or lightening its position; When it is "exhausted", it should be chased by a heavy position, or it should be shipped.
This is how I buy and sell in the daily watch and time-sharing system.
To sum up, buy small and sell small (buy in small green column and sell in small red column); The front is big and the back is small (that is, the front is a big green column or a big red column, and the back is often a small green column or a small red column)
MACD indicator trading rules
The simplest usage of 1 MACD: Sell the high dead fork and buy the low gold fork.
2. If the stock price deviates from the MACD indicator trend, be careful!
3.MACD or KDJ dead fork is red warning signal! MACD's desire for a golden fork instead of a golden fork will lead to a wave of decline!
Two lines of 4.4. MACD is the position area above the axis and the short waiting and rest area below the axis.
Deviate from MACD
Deviation is the premise of using MACD to judge buying and selling points, and it is also the essence of MACD technical indicators. Especially, the success rate of deviation caused by vibration in multiple time periods is very high; If the bottom deviation and the top deviation appear at two different levels at the same time, then in most cases, the small level is subordinate to the big level. MACD deviation can be divided into bottom deviation and top deviation, and there are roughly three kinds:
1. In the process of stock price rising, the area of MACD red column is smaller than that of the previous wave, and the corresponding rising range is also smaller than that of the previous wave, which is a signal of top deviation and selling; In the process of stock price decline, the area of MACD green column is smaller than that of the previous wave, and the corresponding decline is also smaller than that of the previous wave. This is a bottom deviation and a buying signal. Common in short-term analysis cycle, such as 5 minutes, 30 minutes, etc. , mostly used for short-term trading.
2. The stock price has reached a new high, but the red column is getting shorter and shorter. The stock price hit a new low, the green column shortened and the bottom deviated. This deviation shows that the trend is about to change, but the final formation of the trend change needs the golden fork or dead fork of MACD and EMA to confirm.
3. The stock price hit a new high, but the MACD did not hit a new high, which is a top deviation; The stock price innovation is low, and the MACD innovation is not low, which is the bottom deviation. After the deviation occurred, the red and green columns shortened, the 5-day moving average and the white line turned around as turning points, and the dead fork of the moving average and MACD confirmed the final formation of the deviation. The greater the deviation (such as daily line, weekly line, etc.). ), the higher the success rate. In addition, the corresponding business is not equal, and the strategy is different. When it reaches the top, maybe a top deviation from the high position will lead to flight and the stock price will plummet, but when it reaches the bottom, it often takes several bottom deviations to stop the decline.
The basic usage is as follows:
1.MACD golden fork: DIFF breaks through DEA from bottom to top, which is a buy signal.
2.MACD dead fork: DIFF breaks through DEA from top to bottom, which is a selling signal.
3.MACD green turns red: MACD value turns from negative to positive, and the market turns from short to long.
4.MACD turns from red to green: MACD value turns from positive to negative, and the market turns from long to short.
5.DIFF and DEA are both positive values, that is, when both are above the zero axis, the megatrend belongs to a bull market, and DIFF breaks through DEA upwards, which can be used as a buying signal.
6.DIFF and DEA are both negative numbers, that is, when both are below the zero axis, the general trend is short market, and DIFF falls below DEA downward, which can be used as a selling signal.
7. When the trend of DEA line deviates from the trend of K line, it is a reverse signal.
8.DEA has a high error rate in consolidating the situation, but if it cooperates with RSI and KDj indicators, it can make up for the deficiency appropriately.
In stock market investment, MACD indicator, as a technical analysis method, has been recognized by investors. But how to use MACD indicators. Only in this way can the investment income reach the best level.