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The application of the MACD indicator four: the inventor of the theory of Charles Gerald Appel

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					The application of the MACD indicator four: the inventor of the theory of Charles
Gerald Appel
The application of the MACD indicator four: the inventor of the theory of Charles
Gerald Appel
MACD inventor Charles Gerald Appel (Gerald Apple) on the interpretation and
application of MACD and domestic have certain differences.
MACD his interpretation and application of the following principles:
MACD indicators of DIF is the short-term moving average line and the difference
between long-term moving average, the DIF is reflected in both up and down
movement of the aggregate average departure from the situation, which is formerly
known as the original meaning of MACD, MACD indicators therefore called
polymerization deviated from the moving average, from point, even through the
DIF- line movement and trend reflects a general trend in which the stock, and easier to
understand the MACD judgments on market principles, which China called Moving
Average Divergence effects of quite different meaning.
1. MACD indicator only by the two curves and the 0 axis, and has no say red and
green energy column, so there is no column on the red, green and morphological
analysis to analyze the amount and duration of changes in analysis and research of the
main lines of movement through the DIF, the location, sports trends and with the
signal line (DEA line) cross, and 0 axis through the circumstances involved.
2. DIF is a short-term moving average and long-term moving average of the
difference, DIF's growth up to that long-term cost of short-term cost
growth above the growth that is gained, DIF, said the reduction of short-term cost
growth down to less than the long-term cost increases, is dropped, the DIF is the up
and down stock prices rise and fall, according to this point, MACD indicators of the
movement is dominated by DIF, DIF U-turn up is the buy signal, DIF is the line
U-turn down sell signal, which is based on the basic concept of MACD come;
DEA Line Moving Line by DIF come, so it must be accompanied by DIF line
movement and exercise, and it is more smooth than the number of DIF line movement,
the two lines with their movement in the process of cross-phase phenomenon occurs.
If the DIF cable line from the DEA bottom line from the bottom up, and DEA DEA
break up line is also run, this is Jin Cha; If DIF wire line side from the DEA, the DEA
on the down line and DEA line break down and run, this is Sicha. Jin Cha and Sicha
explains the meaning of DIF- line movement, reflecting the trend of stock price
movement signal can be used as a basis for trading, DEA line is set up to get the
signal, so the DEA line called the signal line, Jin Cha bought into the signal further
confirmation; Sicha is a sell signal for further confirmation. This is the signal line
rule.
This is more radical than domestic: domestic only when the DEA DIF across lines and
across the 0 axis is the trading signals. Without further confirmation of the buy signal
is accepted, although there may be more profit opportunities, but also greater risk, and
assume more of the transaction costs.
?
The relative 0 axis, if the DEA DIF line and line break from the bottom up 0 axis, that
is, buy signal, and if the DIF line and break-down by the DEA line 0 axis, is the sell
signal.
3. Buy signal and sell signal on the stock price before the run of posture demands, that
is, if after the issuance of the last sell signal, if the DIF line through 0 轴 under
top-down, that is too weak areas into strong areas, then issued after the buy signal is
more effective; Similarly, if the buy signal in a recent issue of the future, DIF on the
bottom line through the 0 axis, that is too strong by the weak zone into the area, then
more after the sell signal issued effective. This is the requirement to enter too weak in
the area before buying, selling off before entering a strong area, reflecting the more
inclined to buy low, sell high MACD thrown only do specific band market, does not
participate in the adjustment principles (0 line rule).
4. The trend with a 50-day moving average to determine the general trend in order to
determine their own operating principles and the use of indicators and parameters.
When the 50-day moving average going up or basically normal, the market strong or
at least sideways, can participate in, when walking down the 50-day moving average,
the market is weak, not participation; with long-term indicators to confirm the
short-term MACD MACD indicator signal significance, when short-period
long-period MACD MACD buy signal is confirmed, then the buy signal is more
credible (50-day moving average trend recognition rules).
5. According to the general trend. Indicators in different cycles to analyze and deal
with different combination of market. Normal waves in the market, such as when an
ordinary parameter index (12,26,9) of the sale point, when the big bull market for
timely intervention, hurry out, with a short cycle indicators (6,19,6) to determine buy
points, with a long cycle (19,39,9) index to determine selling point (different cycles
law).
6. Signal with a departure from recognized the validity of the sale. The event of
departure from the top, especially MACD above 0 axis deviated from the high
occurrence of the top when the market turns down will occur, investors should sell
leave. Also on the top of departure from the domestic departure, but only as a way to
the top of departure. This is the turning point for judging market principles and the
basis (departure from the rule).
7. For the big bull market high of departure, there is the principle of special leave:
MACD sell signal when the first issue, first check whether there is departure from the
top of the signal, if not the top depart from, and prices run in 50 day MA, you can
ignore The first sell signal, (so easy to prevent in a large market correction in the
small exit, so that was difficult to re-enter.) But in the second sell signal is issued, it
should be shipped in time to leave. If you miss the first signal to leave, the price did
not continue to rise, you should stop the 50-day moving average as a target, if the sell
signal is issued in the second before the stock price below 50 day moving average,
you should leave This is because the prior approval of the leave signal is true, the
share price on the next medium- term moving average is below 50 signals a
recognition leave (leave the big bull market principles).
8. Although not in favor of the consolidation and the weak market in the use of
MACD, but found that the MACD in Ruoshi are strong buying opportunity.

				
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posted:8/27/2010
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