1, MACD smoothing similarity moving average
The Moving Average Convergence Divergence (MACD indicator) is also called the moving average convergence index. According to the construction principle of the moving average, the closing price of the stock price is smoothed, and the arithmetic mean is calculated. It is a trend indicator.
MACD has two major uses:
Homeopathic operation - Golden Fork / Dead Fork method
It is chasing up and down, in the long market, Jincha buys, and in the short market, the fork sells.
Reverse market operation - top and bottom departure method
It’s just escaping from the top, selling short at the top, and buying more at the bottom.
2, RSI Relative Strength Index (RELATIVE STRENGTH INDEX, RSI for short)
The Relative Strength Index (RSI) analyzes the market's intentions and strengths by comparing the average closing gains and the average closing declines over a period of time to make future market trends.
1) Limited by the calculation formula, the value of the strength indicator is between 0 and 100, regardless of the price level.
2) Strength and weakness indicators above 50 indicate a strong market, while below 50 indicate a weak market.
3) Strong and weak indicators fluctuate between 70 and 30. When the 6-day index rises to 80, it means that the stock market has been overbought. If it continues to rise, more than 90, it means that it has reached a serious overbought warning zone. The stock price has formed a head, and it is likely to be reversed in the short term. Turn the turn.
4) When the strength indicator of the 6th day drops to 20, it means that the stock market is oversold. If it continues to fall below 10, it means that it has reached a serious oversold area, and the stock price is likely to have a chance to rebound.
5) The overbought value of each type of stock is different. Before we take a buy/sell action on a stock, we must first find out the overbought/oversold level of the stock. As for measuring the overbought/oversold level of a stock, we can refer to the stock's record of strength and weakness over the past 12 months.
6) When the strength indicator rises and the stock price falls, or the strength indicator weakens and the stock price rises, this situation is called “drawback”. When the RSI is at 70 to 80, the price is broken and the RSI cannot break, which forms a “top-down”. When the RSI is 30 to 20, the price is broken and the RSI cannot break. Bottom back." The divergence between this indicator of strength and weakness and the movement of stock prices is usually a signal that the market is about to undergo a major reversal.
3, KDJ Random Index
Stochastic indicator by George C. Lane was created. It combines the advantages of momentum concept, strength and weakness indicators and moving averages to measure the degree of variation in stock prices from the normal range of prices.
The KDJ indicator considers not only the closing price, but also the recent high and low prices, which avoids the weakness of ignoring the true volatility by considering only the closing price. The stochastic indicator (KDJ) is generally based on the principle of statistics, the highest price, the lowest price, and the closing price of the last calculation period that have occurred in a specific period (usually 9 days, 9 weeks, etc.) and the three The proportional relationship between the two, to calculate the immature random value RSV of the last calculation cycle, and then calculate the K value, D value and J value according to the method of smooth moving average, and draw a graph to judge the stock trend.
The stochastic indicator (KDJ) is calculated based on the highest price, the lowest price and the closing price. The obtained K value, D value and J value respectively form a point on the coordinates of the index, connecting countless such points. It forms a complete KDJ indicator that reflects the trend of price fluctuations. It is mainly a technical tool that uses the true volatility of price fluctuations to reflect the strength of price movements and overbought and oversold, and to issue trading signals before prices have risen or fallen. In the design process, it mainly studies the relationship between the highest price, the lowest price and the closing price. It also combines some of the advantages of the momentum concept, the strength indicator and the moving average. Therefore, it can be judged quickly, quickly and intuitively. Quotes. Since the KDJ line is essentially a concept of random fluctuations, it is more accurate for grasping the short- and medium-term market.
4, BOLL indicator - BOLLINGER BANDS Bollinger line
The BOLL indicator is a very simple and practical technical analysis indicator designed by US stock market analyst John Brin based on the standard deviation principle in statistics. Generally speaking, the movement of stock prices always changes within a certain range around a certain value center (such as moving average, cost line, etc.). The Bollinger Band indicator is based on the above conditions and introduces the “share price channel”. The concept, which believes that the price gap of the stock price changes with the magnitude of the stock price fluctuation, and the stock price channel has variability, it will automatically adjust as the stock price changes. Because of its flexibility, intuitiveness and trending characteristics, the BOLL indicator has gradually become a popular indicator in the market where investors are widely used.
Among the many technical analysis indicators, the BOLL indicator is a relatively special type of indicator. Most technical analysis indicators are constructed by quantitative methods. They do not rely on trend analysis and morphological analysis themselves, while BOLL indicators have an inextricable link between the shape and trend of stock prices. The concept of “stock price channel” in the BOLL indicator is a visual representation of the stock price trend theory. BOLL uses the "share price channel" to display various price levels of stock prices. When the stock price fluctuations are small and the stock price is consolidating, the stock price channel will be narrowed, which may indicate that the stock price fluctuations are temporarily quiet; when the stock price fluctuations exceed the narrow The upward trend of the stock price channel indicates that the unusually high upward fluctuation of the stock price is about to begin; when the stock price volatility exceeds the narrow track of the narrow stock price channel, it also indicates that the unusually strong downward fluctuation of the stock price will begin.
Investors often encounter two of the most common trading traps. One is to buy low traps. After investors buy in the so-called low position, the stock price not only does not stop falling but falls continuously; the second is to sell high traps, the stock is in the so-called high After the point of sale, the stock price has risen all the way. The Bollinger Band has specially used Einstein's theory of relativity. It believes that all kinds of markets are interactive. The changes in the market and between the markets are relative. There is no absolute. The stock price is relative. The stock price above the upper trajectory or below the lower trajectory only reflects that the stock price is relatively high or low. Before the investor makes the investment judgment, it must refer to other technical indicators, including price and quantity coordination, psychological indicators and analogy indicators. , related data between markets, etc. In short, the stock price channel in the BOLL indicator plays an important role in predicting the trend of the future market. It is also a unique analysis tool for the Bollinger Band indicator.
5, CCI Homeopathy
The homeopathic indicator is also called the CCI indicator. The English name is “Commodity Channel Index”. It is used for the judgment of the futures market at the earliest. It is used for the judgment of the stock market and is widely used. Different from the various technical analysis indicators invented by the closing price, opening price, highest price or lowest price of most single stocks, the CCI indicator is based on the statistical principle, the degree of deviation between the introduction price and the average range of the stock price during the fixed period. The concept emphasizes the importance of the average absolute deviation of stock prices in the technical analysis of stock markets and is a relatively unique technical analysis indicator.
Among the commonly used technical analysis indicators, CCI (homeopathic indicator) is the most peculiar. The CCI indicator has no operating area restrictions and varies between positive infinity and negative infinity. However, unlike all other indicators that do not have operating area restrictions, it has a relative technical reference area: +100 and -100. According to the common ideas of index analysis, the operating range of CCI indicators is also divided into three categories: +100 or more for overbought areas, -100 for oversold areas, and between +100 and -100 for oscillating areas, but the indicator is here. The technical implications of operations in the three regions are different from the definitions of overbought and oversold for other technical indicators. First of all, in the oscillating zone between +100 and -100, this indicator is basically meaningless and cannot provide much clear advice on the operation of the market and individual stocks, so it is invalid under normal circumstances. This also reflects the characteristics of the indicator - CCI indicators are specifically designed for extreme situations, that is to say, under normal market conditions, CCI indicators will not work, when CCI scans abnormal stock price fluctuations, seek speed Quick decision, the outcome of the win and loss immediately, the gambling loss must also be closed immediately.
6, ADX average trend indicator
The ADX (Average Directional Indicator) is another commonly used trend measure. Like the Trending System (DMI), Welles Wilder, using the change in long-short trend and the average trend of stock price changes, can reflect the trend of stock price movements, but not Controlling the band's profit level, therefore, the signal frequency is very high and the profit is unstable, which is often used to assist other indicator system operations.
ADX can't tell you where the trend is going. However, if a trend exists, ADX can measure the strength of the trend. Regardless of the uptrend or downtrend, ADX looks the same. The larger the ADX reading, the more obvious the trend. When measuring the intensity of the trend, you need to compare ADX readings for a few days to see if ADX is rising or falling. The ADX reading rises, indicating a stronger trend; if the ADX reading drops, the trend is weaker. As the ADX curve climbs upwards, the trend is getting stronger and stronger and should continue to develop. If the ADX curve falls, the trend begins to weaken and the likelihood of reversal increases. As far as ADX itself is concerned, since the indicator is behind the price trend, it is not a good indicator, and it is not suitable for the operation of ADX alone. However, if used in conjunction with other indicators, ADX can confirm whether there is a trend in the market and measure the strength of the trend.
7. Momentum metrics
The momentum indicator, also known as the MTM indicator, is the full name of the “Momentom Index” in English. It is a short-term technical analysis tool that specializes in stock price fluctuations. The Momentum Index aims to analyze the speed of stock price volatility, and to study the various accelerations, decelerations, inertias, and the phenomenon that stock prices change from static to dynamic or from static to dynamic during the volatility process. The theoretical basis of the momentum index is the relationship between price and supply and demand. The price increase of the stock price must be gradually reduced with time, the speed of change slowly slows down, and the market can be reversed. On the contrary, the decline is also true. In this way, the momentum index is calculated by calculating the speed of stock price fluctuations, and the different signals such as the peak of the stock price entering the strong trend and the low point of turning into the weak position become a kind of market measurement tool that investors prefer.
The momentum change of the stock price in the fluctuation can be reflected by the daily momentum point connecting the curve, that is, the momentum line. In the momentum index graph, the horizontal line represents time and the vertical line represents momentum range. Momentum is centered on 0, that is, in the static zone. The centerline is the stock price rise zone, and the lower part is the stock price decline zone. The momentum line periodically moves back and forth around the centerline according to the stock price wave, thus reflecting the speed of stock price fluctuation.
8, GANN FAN Gann angle line
Gann Fan, also known as the Gann line, is a common technical analysis tool for domestic investors, but due to the uniqueness of this tool, some stock analysis software is not well understood. It is undoubtedly a pity that there is no way to appreciate the powerful market-measuring effect of the Gann line. The angle line is an important part of Gann's theory series. It has a very intuitive analysis effect. The criss-cross trend line provided by the angle line can help the analyst to make a clear trend judgment. Therefore, the angle line is a set of inexpensive and analytical methods that can be easily learned by anyone with little time.
When talking about the meaning of the angle line, Gann declared: "When time and price form a square, the city's operational potential is close to the front." It shows that the angle line is not a trend line in the general sense, according to the concept of time and price two degrees of space. Promote a unique analytical system. Therefore, some analysts pointed out that the angle line is Gann's greatest invention, which opens up the irreconcilable but inseparable pattern of time and price. From an operational point of view, this is even the most valuable part of technical theory.
Therefore, the production of the Gann line should have a square concept. The so-called square is also a square. The 45 degrees appearing diagonally is a two-half of the square. It represents the equilibrium relationship between time and price. When the time and price of the model reach this equilibrium point at the same time, the market will have a major shock.
The Gann line reflects the relationship between price and time in Gann's theory.
The most important concept in Gann's theory is the relationship between the Gann line and the price movement.
The Gann line establishes time on the X-axis and establishes the price on the Y-axis. The symbol of the Gann line is “TxP”, T is time, and P is the price.
The Gann line defines price movements by time units and price units. Each Gann line is determined by the relationship between time and price. The Gann line is drawn from the distinct vertices and bottom points on the map, and they cross each other to form the relationship between the Gann lines. They not only determine when prices will reverse, but also indicate which price points will be reversed, forming a wonderful harmony between time and price.
The basic ratio of the Gann line is 1:1, that is, the unit runs at a price per unit time. In addition, there are 1/8, 2/8, 1/3, 3/8, 4/8, 5/8, 2/3, 6/8, 7/8, and the like. Each Gann line has its corresponding geometric angle.
9, SAR parabolic steering indicator
Stop and Reveres (SAR / The Parabolic Time/Price System) is also called stop loss steering. “Stop” means stop loss and stop loss. This requires investors to set a stop price before buying or selling a stock to reduce the risk of investment. And this stop loss price is not always the same, it is consistent with the fluctuation of the stock price stop loss. How to effectively control the potential risks without missing the opportunity to earn more benefits is the goal that every investor pursues. However, the stock market situation is unpredictable, and different stocks have different trends in different periods. If the stop-loss position is set too high, it may happen that the stock is sold when its adjustment falls, and the sold stock is launched one after another. The new upswing has missed the opportunity to make more profits. Conversely, if the stop loss is set too low, it will not have the effect of controlling risk. Therefore, how to accurately set the stop loss position is the purpose stated in various technical analysis theories and indicators, and the SAR indicator has its unique function in this respect.
“Reverse” means reverse and reverse operation. This requires investors to set a stop loss before deciding to invest in stocks. When the price reaches the stop price, investors must not only carry out the stocks bought in the previous period. Close the position, and at the same time you can close the short position, in order to maximize the benefits. This method can be operated in the securities market with short-selling mechanism. At present, China's domestic market does not allow short-selling. Therefore, investors mainly adopt two methods. First, when the stock price falls to break the stop price, the stock will be thrown in time. The currency wait and see, the second is when the stock price breaks through the stock price pressure indicated by the SAR indicator, buy stocks or hold stocks in time.
10, rate of change indicator
Rate of change (ROC), ROC is the speed of the day when the stock price is compared with the stock price of a certain day before a certain number of days, to reflect the speed of the stock market. In most books, the ROC is called a variable speed indicator, a rate of change indicator, or a rate of change indicator. The literal translation from the original English text should be the rate of change.
1) ROC indicates the rate at which the stock price rises or falls.
If it is an upward trend and the ROC is positive, and the ROC is rising step by step, it means that the upward trend is accelerating. If the ROC starts to level off, this means that the stock price increase is similar to the stock price increase a few days ago, although It is still on the rise, but the speed has slowed down; if the ROC starts to fall, although the stock price is still rising, but the rising power has declined; if the ROC begins to extend below 0, the recent downward trend has begun to emerge, and the ROC is further Next, the decline in power is strengthening.
The ROC is the relative difference between the stock prices of the two heads showing a certain time interval. When the ROC rises, the stock price rises from the stock price a few days ago. When the ROC is flat, the current share price increase is only the same as a few days ago. With the ROC down, the stock price has been smaller than the number of days. This is how ROC shows the acceleration and deceleration of current stock price trends.
For the case of a downward trend and a decrease in ROC, and a negative value, it can be similarly described.
2) ROC changes ahead of stock price changes
Because of the structural characteristics of ROC, ROC changes always lead the change in stock price, rising or falling a few days earlier than the price. When the stock price is still rising, the ROC may have gone flat, and when the stock price is flat, the ROC may have fallen. This is also the basic basis for deviating from thought.
3) ROC fold changes have a certain range
ROC can be positive or negative, can be large or small, but the ROC changes basically have a range. In other words, we can find a positive number and a negative number, so that the ROC curve mostly falls within the range of these two numbers, that is, smaller than this positive number and larger than the negative number. This is like adding the upper and lower boundaries to the ROC. These two boundaries are very helpful for us to predict the rising and falling depth of the stock price in the future. We can use these two boundaries to calculate the future rise and fall heights by inverse calculation.
