Introduction to the basics of stocks --- MACD _f_ by fdjerue7eeu


									Introduction to the basics of stocks --- MACD (f)
????MACD called the similarities and differences between exponential
smoothing moving average (Moving Average Convergence and Divergence).
From the double moving average growth would come from the fast moving
average minus the slow moving average, MACD meaning and double moving
average is basically the same, but reading it more convenient.
When the MACD turned positive from negative, is a buy signal. When the
MACD turned negative from positive, is a sell signal. When the MACD to
large angle changes, said the fast moving average and the slow moving
average gap between the very rapid opened, representing a market trend
change. Geral Appel MACD is made in 1979, it is a use of short-term
(often 12 days) and long-term moving average (usually 26 days) moving
average separation between the polymer and status, buy, sell time to
make judgments of technical indicators.
Application of the principles
The technical analysis of existing software, MACD is frequently used
parameters fast and smooth moving average of 12, the slow moving
average smoothing parameter is 26. In addition, MACD and have an index
- column line (BAR). In most technical analysis software, the column
line is colored in green below the 0 axis of the following is higher
than the 0 axis than is red, the former representative of trend is
weak, the latter representing the trend is strong.
Here we use the MACD indicator is about the basic principles should be
1. When the DIF and the DEA is above the 0 axis, is a bull market, DIF
line is the bottom line through the DEA buy signal. Line from top to
bottom through the DEA DIF line, if the value of the two lines above
the 0 axis is still in the running, just only as a temporary drop, but
can not identify trends turning point, when it needs to sell
integrated with other indicators judgments.
2. When the DIF and the DEA is below the 0 axis, belonging to a bear
market. DIF line from top to bottom line is sold through the DEA
signal, DIF line through the DEA bottom line, if the value of the two
lines is still in the 0 axis of the following operation can only be
seen as just a brief rebound, but not sure trends in turn, also need
help at this time whether to purchase comprehensive judgments of other
3. Columnar linear shrinkage and amplification. In general, the column
continued contraction shows that the trend line running strength is
gradually weakening, when the columnar line color is changed, the
trend identified turning point. But in some period of time not long
MACD indicators of use, this view can not be fully established.
4. Morphology and departure from the situation. MACD indicators also
emphasize form and departure from the phenomenon. When the form of DIF
on the MACD indicator line and the formation of high bearish MACD line
shape, such as head and shoulders, double, etc., should be vigilant;
and when the MACD indicators on the form of line and the MACD line to
form DIF low bullish form, should consider buying . In order to
determine the form of DIF when the main line, MACD line supplement. As
prices continue to rise, while the MACD indicator out of a wave of
low-Bobby trend, it means that the top away from there, indicating
that prices will likely occur in the near future turned down, as
prices continue to decrease, while the MACD indicator is out of a
waves higher than the wave of the trend, it means the end of departure
from the phenomenon, indicating that prices will end soon fall, turned
5. Leather market in the index will be distorted. When the price is
not the top down or bottom-up operation, but to maintain horizontal
movement, we call leather market, this time a false signal will be
generated in the MACD indicator, indicators DIF line and MACD line
Cross will be very frequent, while the retractable cord will columnar
frequent, the color will often change from green to red or from red to
green, this time distortion MACD indicators in the state, use values
reduced accordingly.
Shape of the curve with the DIF analysis, mainly using the principle
of divergence indicators. Specifically: if the DIF's departure from
the trend and stock prices, it is time for concrete action. However,
according to the above principles to guide practice, accuracy is not
satisfactory. After practice, explore and summarize the integrated use
of 5, 10, the average price lines, 5, 10 daily average volume of lines
and MACD, the accuracy greatly improved.
Other prediction principle
When the MACD line and Trigger are all positive, that is above the 0
axis, indicating the general trend is still a bull market, the trend
line is upward. And then the vertical column chart (Oscillators) is
increased from 0 to the extension axis, I can safely buy.
When the MACD line and Trigger are negative, that is, below the 0
axis, indicating the general trend is still a bear market, the trend
line is down. And then the vertical column chart (Oscillators) is down
below the center axis 0 0 axis, and is under the extension axis at 0,
then should be immediately sold.
When the MACD line graph with the trend of K there departure, it
should be reversed as a price signal, we must pay attention to
intraday trend.
In terms of its advantages, MACD can automatically define the high
side or the current bearish trend in stock prices to avoid the risk of
reverse operation. As the trend is established, you can set out
strategy to avoid unnecessary and out of the number of, or occurrence
of the consequences of poorly timed. MACD Although the trend for
mid-judged, but not for short-term operation. Furthermore, MACD can be
used to increase or decrease in the mid judged the beginning and end
of the market, but the trend box or sticking the sharp oscillations of
the disk is no fixed value. Similarly, MACD used to analyze the trend
of the stock, the more applicable to a sharp fall in the speculative
stocks, very little change in the price of shares does not apply to
the so-called leather. All in all, MACD's role is to identify
overbought market super selling point, from the market's turnaround
Short-term trading strategies of investors
1. The moving average convergence divergence indicators (MACD) charts,
such as MACD1 turnaround from the top down, or turn MACD2 from the top
down, then prices may fall, may consider shipping.
2. On the contrary, as MACD1 turnaround from the bottom up, or MACD2
turnaround from the bottom up, then prices could rise into the cargo
could be considered.
3. The emergence of trading signals will be more frequent, the number
of investors buying and selling will increase accordingly. When the
big rising market, the price will be adjusted, investors failed to get
a more substantial returns. In contrast, less profit for the same, the
risk of loss is also low.
[Edit this paragraph]
In the short-term trading strategies of investors
1. The moving average convergence divergence indicators (MACD) charts
a branch known as the vertical line pointer moving average convergence
divergence (MACD), and green horizontal line vertical line of the
watershed is columnar, columnar vertical line appears in this
watershed below, known as "negative", out now on the
watershed, it is called "positive."
2. On the short-term investors, when the moving average convergence
divergence indicators (MACD) columnar vertical line from the negative
to positive, which is below the vertical line from the watershed above
the conversion is into the stock signals. Such as moving average
convergence divergence using a pointer (MACD) to analyze, the MACD1
will be from the bottom up through the MACD2.
3. Conversely, when the cylindrical vertical line from the positive to
negative when the vertical line that is turned on by the watershed
below, the signal is put goods. Similarly, MACD1 will be from top down
through the MACD2.
Neutral trading strategies of investors
1. The moving average convergence divergence indicators (MACD) charts
of the gray and black horizontal dashed zero line, such as MACD1 and
MACD2 above the line are at zero, indicating an upward trend in market
conditions, unfinished. Therefore MACD1 and above the zero line MACD2
down turn in the trend, or MACD1 below MACD2, would only be open long
position as the signal. But if MACD1 below the zero line in, and below
MACD2 only when goods constitute more reliable sell signal.
2. Conversely, if MACD1 and MACD2 are below the zero line, indicating
the decline unfinished. Therefore, MACD1 and MACD2 below the zero line
in the trend turned upward, or MACD1 rise above MACD2, can only open a
short position as a signal. But if MACD1 is above the zero line, and
rise above MACD2, be regarded as more reliable signal into the cargo.
Practical experience
(1) shares fell in after a long, began to bottom, and then began a
slow recovery in stock prices, 5, 10, the average price lines, 5, 10
daily average volume of the gold line and the MACD crossover points
have emerged, referred to as the three-Jin Cha , when the stock price
bottomed out in the signal, while the number of cross more and see the
bottom of the continuous improvement of the accuracy of the higher,
the stock market will rise out of the wave. Such as: 0933 Shenhuo
shares in the January 5, 2000, Unit 5, 10, the average price line, 5,
10, while average daily volume on the bottom line and the MACD MACD,
which appears three-Jin Cha, at this time that the best time to
intervene, and then appeared a wave of strong stock market upside, in
3 months time, the share price, which rose to 17.50 yuan 10.69 yuan,
an increase of 70%.
(2) When the stock through a rose, sought after by many small
investors, the main force to be distributed, then there 5, 10, the
average price line, 5, 10, while average daily volume of line and MACD
Sicha, the is the best time to sell, then if a little hesitation, the
stock will blew. Such as the 0722 gold fruit industry, due March 9,
2000 three Sicha there is a strong sell signal, and then started a
stock price plunged in just 2 months, fell to 13.46 from the 27.17
yuan yuan, down amazing. After the main escape, from that of a
continuous Yindie.
(3) parameters fast EMA12, slow EMA26
Usage: MACD meteoric rise with rising stock prices, the white line
across the Yellow River line (first do not buy), then with the stock
down, DIF (white line) to the MACD (yellow line) to move closer, when
the white line and yellow line bonding (the turn to turn green is not
green), then you can just meet at K line, when the K line has
stabilized at this time signals, such as: income Yang, Cross Star and
so on. (Note that when the bonding in the forthcoming White Yellow
draining imports begin to observe the power of the seller), can be
stabilized if the time called "the end of divergence."
bottom divergence is the best time to buy!!! are free to take cases,
many stocks are at the bottom this phenomenon. Qilian 99 cases of 600
720 19 May 0768 XAC International 99 May 18 and June 4 0542TCL
Communications 18, 2000, 1, and so on, abound.
Conversely, when the stock price highs, MACD turned green, bounced
again, this time when the DIF (white line) and MACD (yellow line) when
bonding [to red is not red] If blocked, such as income Yin, Cross
magnitude it is possible to "top divergence" is the last
chance to sell!!! this time many people think to resume its rally, the
best selling points in other people tend to buy quilt them. are free
to cite a few examples of business 2000 .0796 Po on August 17. 600,720
Qilian 98 November 24 600 823 Group of 98 on the 10th Vientiane, 29,
Nov. 9, Dec. 3.
Operating Note:
A. divergence breakdown or a breakthrough when it ignored the previous
high (low) bit
B. high divergence may be as long as there is usually top-selling, do
not fight to re-meteoric rise, unless the sun or the daily limit.
C. The short-term trading point for the search for means of wonders,
short-term rate of 15% or more, but the trend to combine long-term
form of the center line and others.
(4) appears in many users, the average system parameters (number of
days) is set to 5 days, 10 days, 20 days or 30 days is commonly used
to set method, but personally believe that China's stock market at
this stage, 55 days, 120 day, 250 day moving average number of days is
the ideal setting, it may be said: the number of days short-term
moving average system can only provide the user with some modest
profit, but long-term average system was able to find a big dark horse
for us to generate huge profits When prices fall, these three averages
often provide us with Buying or time to sell rallies.
From some of the great bull stock share prices doubled in the trend is
easy to see, breaking the long-term moving average on the file that is
55 days, 120 days and 250 days moving average is necessary for the
formation of large bull market conditions, although the price of these
stocks are not over the long-term average will rise sharply, but there
have been substantial increase in the stock price rose sharply in both
the long-term average after the break. Once the long term moving
average was ordered, and began to diverge, then stock prices will rise
out of a continuous market shocks.
We are more than Haimei Lin (600,073) as an example to analyze: the
stock since mid-October 1999, after moving average fell to 250 days
moving average support and stabilized by the then market bottoming
out, early in December half year moving average breaking pressure on
the file, herald wave rally is brewing, 30 December share price fell
to 120 days moving average at the back to stabilize, and again up,
entered the stage dramatically rose; subsequent stock price formation
in the February 17 finished lower, to the next file not stabilized at
55 days moving average fell to 120 day moving average has stabilized,
then rebounded, but the file was blocked in the last 55 days moving
average, the rally ended. June 15 this year, below the 120-day moving
average price, followed by the formation of the moving average of
stock prices was the pressure, on June 29 issued a Sicha two moving
averages, indicating that stock prices will likely post-day moving
average at closer to 250.
In the three moving average, the 55-day moving average is generally
short-, medium-long-short line strength. In general, the effective
increase in the course of 55 days below the average indicates the
arrival of an interim adjustment, the 120 day moving average is the
long-term strength of long and short boundaries, in general, the stock
fell to 120 days moving average or the current rise After the 120 day
moving average turned around and there are often (high and low phase
formation), 250 day moving average is the original trend line, only
when the 250 days moving average up or down to the more obvious
changes, the only representative of trends is completely weakened or
????MACD has absorbed the advantages of moving average. Determine the
use of moving average trading opportunity, when the trend is clearly
very effective, but if the leather hit the stock market correction,
the signals often not accurate.
Moving average based on principles developed by the MACD, a moving
average to overcome the shortcomings frequent false signals, and
secondly, to ensure the greatest victories moving average.
MACD is calculated two different speeds (long-term and medium term) of
the exponential smoothing moving average (EMA) of the difference as
judged from the status of market basis.
1, the first closing prices were calculated at exponential smoothing
SHORT AND LONG day moving average exponential smoothing moving
average, denoted by EMA (SHORT) and EMA (LONG).
2, find the two exponential smoothing moving average of the
difference, namely:
3, and calculate the MID DIFF day exponential smoothing moving
average, denoted DEA.
4, and finally with DIFF by DEA, was MACD. MACD is often plotted
around the zero axis of the column fluctuations.
In drawing the graph, DIFF and the speed of DEA formed the two moving
average lines, buy and sell signals will depend on the intersection of
two lines. Obviously, MACD is a long-term trends in investment
technology tools. By default, the system
Vice map drawn SHORT = 12, LONG = 26, MID = 9 when the DIFF line, DEA
Line, MACD line (column line).
Application of Law:
1, DIFF and the DEA are all positive, that is, above all in the zero
axis, the general trend is a bull market, DIFF break up the DEA, can
be bought.
2, DIFF are negative with the DEA, which are below the zero axis, the
general trend is a bear market, DIFF can be sold down to below the
3, when the DEA trend line and K line reversal signal occurs when
4, DEA Office in the disk, the error rate is higher, but if with the
RSI and KD, be appropriate to cover the gap.
5, analysis MACD histogram, from positive to negative, often direct
the sale, on the contrary tend to buy signal.
6, the formula:
MACD combat tactics
A, "MACD two low-Jin Cha"
At least four types of technology form can predict the form of
skyrocketing. So, technical indicators are the indicators did not
predict surge? The answer is yes. The first is "MACD MACD two
low," a windfall opportunity. MACD indicator elements are the red
columns, green column, DIF index, DEA indicators. Which, when DIF, DEA
indicators in the O axis of the following, if the short term (8 or 13
trading days) occurred two consecutive Jin Cha, Jin Cha second
occurred when the boom may occur.
Use "MACD MACD low" to find short-term surge in shares,
should pay attention to the following: (a) MACD MACD time low, and may
not be not a soaring stock, but the "MACD MACD low"
probability of a surge in shares and grasp higher. (B) "MACD MACD
low" probability of a skyrocketing stock and grasp it higher,
because after the "first Jin Cha", the short although
slightly offensive again, causing another Sicha, however, bears attack
in the multi-party "DIFF" in front, suffered defeat.
Resulting in the eruption of long power. (C) "MACD MACD
low", if the combined attack on the K line shape form judgments,
the credibility will increase, it will be easier determined intraday
traders involved. Formed a "two to eat a yin yang", the same
day and moderate to heavy volume, significantly increased the
reliability of integrated judged. Namely: "MACD MACD low"
and the K line shape, volume and price relationship can be taken
together to increase certain degree.
Second, MACD practical application stock selection
Investment in the stock market, MACD indicators of technical analysis
as a means of understanding by investors. But how to use the MACD
indicator, can the state achieve the best return on investment, it is
wise little. Technical analysis as an investment in stock market
analysis tools, has two functions. The first is that stock market
investment opportunities and, secondly, to protect the investment
income from stock market losses. Operation in the stock market, MACD
indicators in terms of protecting the interests of investors, far more
than it found the effectiveness of investment opportunities, MACD
indicators as a means of long-term analysis, it generates a
cross-signal lags behind on the short-term trading. MACD indicators
are trend indicators of trends in class, which consists of long-term
moving average MACD, short-term moving average DIF, red energy column
(long), green energy column (short), 0 axis (long and short line) of
five parts. It is the use of short-term and long-term moving average
MACD moving average crossing DIF as a signal. MACD indicator signals
generated by cross-over slow, but as a trading strategy to develop the
appropriate use of better, the specific use is as follows:
1, when the DIF, MACD two values at 0 axis side, indicating the trend
in a bull market, investors should be holding as the main strategy. If
the DIF generated from the bottom up and the MACD cross, does not
represent a buy signal, at which point the market trend has been the
high point of a short-term, it should be buy low, sell high strategy
of throwing. Under normal circumstances, the signal generated in the
cross or the day after the third day, there will be a pullback lows,
now you can buy again, to the purpose of cost sharing. If the DIF down
from the cross on the MACD, indicating the increase in prices over the
band, usually in the cross signal generation market, after a wave
decent rebound, has confirmed the formation of short-term top, when
investors took the opportunity to level positions out. After the
adjustment in the use of Stochastic KDJ, RSI and then wait for an
opportunity KSI intervention, the share of low * for the cost. If the
DIF second from the bottom up and MACD cross, indicating that efforts
will produce a larger wave of rising prices, the cross signal
generation, investors should be holding all the way until the DIF MACD
cross again when the top-down, and then clearance of all stock to be
carrying a purse to go home to rest. As the stock market is very
dynamic, MACD indicators and K line often was away from the trend
charts, commonly known as Bear departure. K Line charts only recently
hit the second or third high points, MACD indicators do not match a
corresponding high point, but the opposite trend, gradually reduce the
vertex. Second kind of phenomenon should arouse the awareness of
investors, because it indicates that the future generation will have
dropped prices, so investors should adopt a strategy to leave
clearance to make their own stock to avoid the quilt, avoid capital
2, when the DIF and the MACD indicator at the two below the 0 axis,
indicating the current trend is bear market, investors should be
holding money as the main strategy. If the DIF down from the cross on
the MACD, it will have an adjustment low. Under normal circumstances,
after which the rally by the wave, and this is a very good open
opportunities for investors. In China the stock market, there is no
established mechanism for the air, so the stock market enters a bear
market, investors, the best strategy is to stay on the sidelines.
Depreciation in the stock investors can also be added to the hands of
the capital. If the MACD crossover DIF from the bottom up, it will
produce a high point recently, investors should be decisive positions.
The signal generation, the general nature of the majority to rebound.
In the bear market, every rebound should be seen as the best
opportunity for shipping. In particular, attention is needed, if the
DIF on the second down from the cross MACD, the herald wave of the
future will produce a larger drop in prices. Investors should be
cross-signal generator, the resolutely clearing out. This decline is
usually generated, are the wave theory of wave C decline was the most
lethal of the wave down. C wave decline only survived, we can say that
really made money in the stock market. After the bear market after the
C wave down occasionally occur and the K line MACD indicator charts
have deviated from the phenomenon, usually referred to as bovine
departure. K Line charts only a second or third recent low, MACD
indicators, and there is no corresponding low production, there was a
higher than a bottom end of the opposite trend, this phenomenon,
indicates that prices in the future trend reversal will occur,
investors should be actively involved, because the current market
there is no risk.
3, when the MACD indicator as separate systems, the short-term
movements can be judged reference to DIF. If the DIF fell below the
top-down axis O can be considered as possible into the bear market
trend, indicating that the general trend will be weak, should arouse
the vigilance of investors. In bear markets, investors bear the risk
outweigh the benefits. If the MACD fell from the space O on the axis
to confirm the bear market trend. Investors should stay on the
sidelines of the strategy used to avoid market risk, so that the bull
market to earn profits are protected. If the DIF from the bottom up
through the O axis, can be regarded as likely to cloth into the bull
market trend. Indicates that the general trend will be strengthened,
the operation should be part of the funds involved. If the MACD from
bottom to confirm the general trend across the O-axis into the bull
market. Investors can stake a bold, positive intervention. In the bull
market gains higher than the risk.
4, in the MACD indicator, the red columns and green energy column of
energy, representing the strength of long and short rise and fall of
energy. Their response to the market than the short-term moving
average in the time ahead of DIF. In the MACD indicators, energy
released into the process is a sequential process asymptotically,
usually was gradually enlarged. The pursuit of philosophy in the East,
"Yang Sheng Decline, Yin Sheng Zejiang." Column in the use
of energy, the use of red energy column chart with K line to draw,
when the K line charts the rise almost 90 degrees, combined with the
rapid amplification red column of energy, almost the top of the
general trend indicates. Especially the adjacent two contiguous red
energy generated when the column, the outbreak of the stock market
will be more rapid. Conversely, in the bear market, this phenomenon is
also true. In a familiar way of this operation, after investors fled
to the roof and hunters will be highly beneficial.
5, in the process of using the MACD indicator, there are two points to
note, first, MACD indicators for short-term top and bottom of the
judged, not necessarily credible, only the combination of rate and
static in the medium-term deviation from the ADR index, it can be
determined. Second, the use of the weekly MACD indicators in the
analysis of the MACD indicator than the daily effect.
In short, when using the MACD indicator to determine the property
market. That the current market is the bull market or bear market.
Depending on the market attributes to different operating strategies
to avoid risk, guarantee profits. Specific operation, MACD crossover
gold general is an important buying opportunity. First, analysis of
its key points, when the DIF and the MACD two lines below the 0 axis
and far away by the level turned down, and the DIF on the fast lane
through the formation of the MACD MACD slow line is a better
short-term buying opportunity , but note that DIF and the MACD to
judge the distance from the 0 axis mainly based on history as a
reference. Occurred in the 0 axis above the MACD is not too far away
from the 0 axis, otherwise the reliability will be greatly reduced.
Prefer in a sea of both the red bars together into one area, in the 0
axis side cross MACD formed a positive DIF Jin Cha, which line the
reliability is good. This will also meet the strong market
opportunities, weak stock market is difficult to make money sense.
Third, utilize "bottom devices," really looking for the
This introduces a use of MACD and 30 day moving average approach with
the bottom looking up, the vast majority of invalid signal can be
removed, leaving the most honest and pure buy signal. The use of
rules: MACD indicator line in the DIF 0 Jin Cha-axis after the
following line with the MACD does not rise to above the 0 axis, but
soon with the MACD line Sicha, this time when investors can wait the
two lines of gold again fork, if the two lines re-Jin Cha (0 axis
below) before and after, 30 average also Guaitou uplink, which
suggests that the bottom and build successful, the possibility of a
wave of higher prices.
Fourth, MACD divergence deep exploration
MACD hunters back relaxation method: basic elements of articles
MACD indicator is the trend of the most famous indicator of the
stability of its main features, such indicators, but the degree of
short-sensitive features in terms of course there are disadvantages
too slow, but it is so, it can determine a longer period, the number
of data given more market trends point to a relatively secure. If so,
will the weekly MACD is shown in a relatively long time-more than 15
minutes, especially in the trading day the use of lunch, may be of
shorter length, as do several transactions are an excellent tool for
short-term. It should be noted that in the current stock trading
system, many parameters quickly take 12, many parameters to take 26
slow, because China's stock market 6 days a week in early January and
an average of 26 trading days inherited so, investors can be changed
to 10 and 22. But the basic difference is not so, then did not pay
attention and have been followed so far. Indicators deviated from the
principle is the essence of the use of the MACD, but also the accuracy
of this indicator is high. Which is subdivided into top and bottom
back flip back flip. The basic points are as follows:
1, the formation of the back relaxation principle: the air is often
more than one party in the market to run after an extended period of
(the image on the cross is the DIF and the DEA, after the opening was
nearly parallel to the same period of time to run), because it
represents the strength of a party strong, in this case they often go
too far, this asymmetry in stock prices and indexes to form a back
flip! If the broader market early last November to double the process
to the top of the back there is a clear relaxation.
2, flip back the origin of values is very important, stressed the need
to have a significantly high (low) points of! Note that in the same
rising (falling) trend in the values and the highest (low) points
after running for some (usually the last paragraph in the fall, a
third wave of stock and index low) after the emergence origin;
3, the principle of continuity. Note: 1, must be the right price in
the complex under the use of indicators; 2, suspension indicators
movement stage failure; 3, price limits indicator failure. Back flip
is a process of energy accumulation, only choppy trade can help the
energy accumulation and conversion! Therefore, the suspension failure
during the MACD indicator is easy! To form a way of looking at, only
to price shocks own run (down) on the back and form the sub-relaxation
has a high top (bottom) signal, that index jumped (fell) formed after
the relaxation is often bounce back (callback) market. Only gradually
is the energy shock of the way to complete the establishment of full
release of the top (bottom) of, but that rebellion while filling the
market one way to expand the scope of the play, which will appear
several times at least after the relaxation back to the real reversal.
MACD hunters back relaxation method: back flip at the end of the three
First, Shibuguosan. Quotes of the crash, after the end of consecutive
low back flip 2 back flip in sequence, the base can be determined down
market is the end. But this time often due to the tenacious strength
of the downward short holiday break, with its breakthrough indicators,
although there may punch through the bottom of the first two back
flip, that is not relative to the formation of the first two back
flip, but its and the original origin back flip back flip is still
forming, and is the third back flip, the operation can be a bold
backhand but bargain-hunting operation. After three back inverted
market rate of relaxation are often large and safe, which requires
continuous late surge in a lot of support. ST segment recent stocks
fell during the 60 minutes figure to form a clear three-back
relaxation, which also supports the expansion of its rally.
Second, the symmetry principle. In the stock market, the symmetry
principle of the existence of very broad, MACD back relaxation is no
exception. In general, there are many times the end of the back flip
back flip, especially after the market peaked mostly stock
transaction, or end the top of the back flip. Because the back end of
the concentration, the energy relaxation, after the commencement of
the rally prone to revenge repressed energy market, while the powerful
inertia will tend to easily cause the top of the back flip.
Third, the morphological analysis. MACD indicators are trends, most of
the traditional form of analysis are also based on trends in the
theory of phase-summed up, therefore the principle point of view from
a greater commonality between the two, which also determines the MACD
can also be the end of the general back flip theory to analyze the
shape, such as head and shoulders bottom, double bottom, three at the
end, Circular Base, platforms and other bar at the end of such a
measure commonly used form of amplitude, such as resistance or support
level is also applicable to evaluation theory, the top back flip the
other hand use. Have rebounded this year as one of the reasons broader
market is the MACD was formed just last year, triple since the end of
MACD hunters back relaxation method: Find the largest pieces of the
end of playing back flip!
Back relaxation theory is concern that its reversal can be predicted
in advance of the possibility. Sense, in essence, that the share price
back flip exceptional movement, return to normal levels is the reverse
of the natural movement principle underlying causes of the power
generated, once the inversion strength enough to counter the existing
trends in the accumulation of power, the reverse then generated. Thus,
reverse back flip in the latent energy of the potential market size is
reverse the most crucial factor!
In the stock market, the kinetic energy is the most direct
representation of the magnitude and volume of the force! Rebound in
the next volume is difficult to predict in advance, so to determine
the potential of the bottom bounce back flip back flip more mainly
depends on the size of the amplitude of the process ! general, should
be actively looking for the end of playing back the largest relaxation
rate, ie: the stock fell back relaxation produced origin, the result
of stabilizing or rebounding stock prices have disk indicators
rebounded sharply leaving, but then fell sharply and stock prices
continue to new low when the index back to the starting level again to
form the playing pieces form a big back flip! Because large pieces of
index like playing resilient spring, when the temporary suppression of
the back flip, but once the abolition of repression, its natural
elasticity to the outbreak of a good! The same time, moving the spring
when the first bomb does not need external aid to can naturally
complete, so the back end of such rally after the early stage of
relaxation is often the shrinkage started! but to a relatively high
level and then heavy volume, has been a sell-off that occurs, the
spring campaign by the opposing forces of repression, the top will
For example: the broader market last August, after the origin of
relaxation back to see the MACD, October and February of this year's
decline have formed the back end of a large range of relaxation, a
rebound on schedule, and the range in a more objective, but are big in
the high entered the top of the building at closing stage.
MACD hunters back relaxation method: bottom bar big bang bounce back
Rolling back the end of a relatively small relaxation of the
opportunities, but because of its rally appears often after
considerable and worthy of attention.
Such characteristics of the back relaxation phenomenon are:
1. Previous upward trend has produced many top of the back flip, once
the stock price will result in continuous formal peaked sharply
2. In diving after the end of the back grind process of the formation
of relaxation, but the small amplitude of the back relaxation process,
the formation of the bottom bar shape;
3. Tie the end of the last paragraph of the official event of heavy
volume is rebound signal, the rally continued strong large amplitude;
4. High rebound significantly reduced once the deal is the gradual
emergence of a rebound at the top;
MACD back because the relaxation produced by antagonistic nature of
the accumulation of energy! Back to tie the end of relaxation, its
previous upward trend in the number of the top back flip short latent
energy of many and great, even if the crash is difficult for a
one-time release of air power, therefore Although the bottom and the
emergence of index origin back flip, but still a strong suppression of
the short side, but only within a narrow range, then the back end of
the long energy relaxation hidden spring is like a rope tied in the
continued savings. However, once short of energy cast is completed,
and the bull appeared for the first time put a lot of offensive power,
which means the spring has been Tiaoduan Bangsheng, long power savings
to make a substantial bounce spring, so the formation of a continuous
rally. Thus, the end of heavy volume bounce back flip action bar The
key strategy is that the first large heavy volume Tiaoduan Bangsheng
signal the emergence of a rebound! its rebound after the transaction
is in fact the energy savings long characterized the kinetic energy
springs from the principle of the above we can see that the rebound
should be a gradual process of closing down The. But once the high
turnover was significantly reduced, also shows that the basic kinetic
energy release of the spring rally is completed, the top will appear.
For example: Shenwan Shan (000,049) the diving market in early 2001
after the process of V-shaped rebound, MACD relaxation there is a
clear tie the end of heavy volume bounce back! The recent broad market
falling, investors may wish to actively monitor the relaxation back to
tie the end of Shares well down the rally!
Relaxation back bargain-hunting method MACD: MACD wave theory combined
with bargain-hunting!
MACD indicators and trends in the wave theory is well-known class of
theoretical tools, the same nature is also from the principle that its
use has certain commonalities, the use of the results are always
better together. Years from the application of wave theory effect, the
efficacy of its most valuable is that after that there will be three
general wave 5 wave trend reversal! When combined with the hunters in
the use of MACD is also obvious that when the MACD fell 5 waves,
indicating the index rebounded to come, involved in the signal has
been quite obvious.
From the trend point of view, such a case the MACD wave-type features
1, from 1 wave 2 wave open until the rebound fell to the formation of
two high points in turn reduced, with the time share prices up or go
flat, has become a typical flip top back;
2, 3 to 5 waves down waves are released on, but the 5 waves, once
formed, the signal has been issued short-term intervention.
3, in the relatively long time-sharing plans, such as 15 minutes or
more, especially in the trading day the use of lunch, may be of
shorter length, as do several transactions are an excellent tool for
In general, MACD hunters in a continuous wave theory combined with
callback-type finishing better use of results. Shaanxi Jinye in early
September as the short-term pullback in the 15-minute MACD to a marked
decrease in 5 waves, crashed into the sky after the rebound. The
current 30-minute tape fell in Figure 3 is type waves, and with the
early formation of large low back flip, so once the 5 waves down
(around about 1540) is complete, there is the possibility of a great
rally! Specific to the plate on, ST class most of the stocks have also
have this characteristic trend, investors may wish to oversold after
the concern.
MACD hunters back relaxation method: back flip trap
Any technical tool has its unique advantages of the place, but the
advantage is sometimes easy to translate into defects, which often lie
lines also become a banker's starting point create a trap!
MACD back flip in the application although the success rate is
relatively high, but there are also potential traps back flip. The
main features: a continuous fall in the back of the end of relaxation
after the formation of the origin, the index began to form a bottom
oblique back flip, but the price has not been rebound, but flat or
even grind plate, and the pressure rise in the indicator bit disk but
to continue to Under the breakthrough, the end of the trap show the
back flip! It is noteworthy that, back again after the relaxation trap
high-level indicators of the end of the back flip, which often appears
at the bottom is the real. The most obvious example is the August to
September last year, the broader market slump in the market after a
rebound in stabilizing the voice, the index still sliding plate and
the MACD indicators also started its own run, but in the end is to
continue to fall again this year the high-level indicators of the end
of the back flip when it is really the bottom middle! Similarly, after
the stock soared in a row can easily flip back the top of a similar
Study of its principles, mainly the energy level and the indicators
reflect the proportion of the relevant degree of difficult.

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