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 followed: 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 indicators. 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 up. 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 point. 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 strengthened. ????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. Calculation: 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: DIFF = EMA (SHORT)-EMA (LONG) 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 DEA. 3, when the DEA trend line and K line reversal signal occurs when departure. 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: DIFF: EMA (CLOSE, SHORT) - EMA (CLOSE, LONG); DEA: EMA (DIFF, M); MACD: 2 * (DIFF-DEA), COLORSTICK 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 losses. 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 bottom 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 regular 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 August. 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 appear. 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 flip 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 diving; 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 are: 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 short-term. 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 trap. Study of its principles, mainly the energy level and the indicators reflect the proportion of the relevant degree of difficult.
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