:
Homeopathic index, also known as CCI index, was put forward by Donald Lambert, an American stock market analyst, in the 1980s, to measure whether stock prices, foreign exchange or precious metal transactions have exceeded the normal distribution. It is a special overbought and oversold index.
1. When the CCI index curve runs in the normal range from+100 line to-100 line, the reference significance of CCI index is not significant, which can be judged by other technical indicators such as KDJ.
2. After the CCI indicator curve breaks through the+100 line from bottom to top and enters the abnormal range (overbought area), when the CCI indicator curve breaks through the+100 line from top to bottom and re-enters the normal range, it indicates that the rising stage of the market price may end, and it will enter a relatively long period of shock consolidation, so it is necessary to make more short positions in time.
3. When the CCI index curve breaks through the-100 line from top to bottom and enters another abnormal interval (oversold area), it shows that the weak state of market price has been formed, and it will enter a long bottom-seeking process, and it is possible to hold empty orders and wait for higher profits. If the CCI indicator curve starts to turn head up after running in the oversold area for a long time, it means that the short-term bottom of the price has been preliminarily proved and a small amount of positions can be opened. The longer the CCI index curve runs in the oversold area, the higher the accuracy of confirming the short-term bottom.
4. when 4. CCI index curve breaks through the-100 line from bottom to top, and re-enters the normal range, which indicates that the bottoming stage of market prices may end and may enter the consolidation stage, and it is possible to do more on dips. 5. when 5. CCI index curve breaks through the+100 line from bottom to top and enters the abnormal range (overbought area), which indicates that the market price has deviated from the normal state and entered a strong state. If it is accompanied by a large-scale transaction, the success rate of timely intervention will be great.