MACD basic introduction MACD’s full name is Moving Average Convergence/Divergence, it is a moving average volatility indicator, but it does not use an ordinary moving average, but a long-term and mid-term smooth moving average (EMA) The cumulative gap is calculated. Two graph lines are displayed in the MACD graph, one is the solid line is the MACD line, and the other is the dashed line (Trigger line) is the MACD moving average. The gap between the MACD line and the Trigger line can be drawn as a columnar vertical line graph (Oscillators), with zero (0) as the central axis, and the positive or negative of the columnar vertical line graph (Oscillators) indicates which of the MACD line and the Trigger line is On the top, which one on the bottom is the best time to judge and buy.

MACD buy signal If MACD breaks above 0, it will reflect the upward trend of the market, and the short-term moving average will break the long-term moving average, which is a buy signal.

If the MACD breaks the Trigger line, it also means that the difference between the two moving averages has narrowed, and the short-term moving average has bottomed out and the market trend may have bottomed out, which can be used as a signal to buy.

If the MACD runs counter to the market, that is, the market price is lower than the other wave, and the MACD is higher than the other wave, it can be regarded as a precursor to the market decline and has certain reference value.

MACD sell signal If the MACD breaks below 0, it will reflect the downward trend of the market, and the short-term moving average will break below the long-term moving average, which is a sell signal.

If the MACD breaks below the Trigger line, it also means that the difference between the two moving averages has narrowed, and the short-term moving average will turn back and the market may peak, which can be used as a signal to sell.

If the MACD and the market diverge, that is, the market price is higher than the other wave, and the MACD is lower than the other wave, it can be regarded as a harbinger of the market peaking and has certain reference value.

Other forecasting principles: When the MACD and Trigger lines are both positive, that is, above the 0 axis, it means that the general trend is still in the long market and the trend line is upward. At this time, the vertical line chart (Oscillators) is extended from the 0 axis, so you can boldly buy.

When the MACD and Trigger lines are both negative, that is, below the 0 axis, it means that the general trend is still in a short market and the trend line is downward. At this time, the columnar vertical line chart (Oscillators) fell from the 0 axis to the center 0 axis, and it was extended under the 0 axis, and it should be sold immediately.

When the trend of MACD and the K-line chart diverges, it should be regarded as a signal that the stock price is about to reverse, and intraday trends must be paid attention to.

In terms of its advantages, MACD can automatically define the current stock price trend is over or under, avoiding the danger of reverse operation. After the trend is determined, the entry and exit strategy can be established to avoid unnecessary times of entry and exit, or the consequences of improper entry and exit timing. Although MACD is suitable for studying and judging mid-term trends, it is not suitable for short-term operations. Furthermore, MACD can be used to determine the beginning and end of a mid-term up or down market, but it is of no value to a box-shaped sharply oscillating trend or a stale disk. Similarly, when MACD is used to analyze the trend of various stocks, it is more suitable for speculative stocks that have fallen sharply, but not for so-called cowhide stocks with little price changes. All in all, the role of MACD is to find the overbought and oversold points in the market, from the market’s turning point.

(1) Trading strategies for short-term investors. In the moving average convergence divergence indicator (MACD) chart, if MACD1 turns from up to down, or MACD2 turns from up to down, it means that the price may fall, so consider selling.

  1. On the contrary, if MACD1 is turning from bottom to up, or MACD2 is turning from bottom to top, it means that the price may rise, so you can consider buying.
  2. Such trading signals will appear more frequently, and investors’ trading frequency will increase accordingly. When the market rises sharply, the price will be adjusted, and investors will not be able to obtain considerable returns. Relatively speaking, less profit is obtained, and the risk of loss is also lower.

(2) The trading strategy of short-term investors in the moving average convergence divergence indicator (MACD) chart. A branch of the vertical line is called the moving average convergence divergence indicator (MACD), and the green horizontal line is the watershed of the columnar vertical line , The columnar vertical line that appears below this watershed is called “negative”, and that appears above the watershed is called “positive”.

  1. For short- and medium-term investors, when the moving average convergence divergence indicator (MACD) columnar vertical line changes from negative to positive, that is, when the vertical line turns from below the watershed to above, it is a signal to purchase goods. If using moving average convergence divergence indicator (MACD) for analysis, MACD1 will traverse MACD2 from bottom to top.
  2. Conversely, when the columnar vertical line changes from positive to negative, that is, when the vertical line changes from above the watershed to below, it is a signal to sell. Similarly, MACD1 will traverse MACD2 from top to bottom.

(3) The trading strategy of mid-line investors 1. The gray-black horizontal dashed line in the moving average convergence divergence indicator (MACD) chart is the zero line. For example, MACD1 and MACD2 are both above the zero line, indicating that the upward trend of market conditions is not over. Therefore, MACD1 and MACD2 turn downwards above the zero line, or MACD1 falls below MACD2, which can only be used as a signal to close a long position. But if MACD1 is below the zero line and breaks below MACD2, it can constitute a more reliable signal to sell.

  1. On the contrary, if MACD1 and MACD2 are both below the zero line, it indicates that the downtrend is not over. Therefore, when MACD1 and MACD2 are both below the zero line and turn upwards, or MACD1 breaks MACD2, it can only be used as a signal to close a short position. However, if MACD1 is above the zero line, and it rises above MACD2, it can be regarded as a more reliable signal for incoming goods.

Classification of moving averages Short-term moving average ==> the blue line indicates   mid-term moving average ==> purple line indicates   long-term moving average ==> green line indicates

There are two short-term moving average combinations (5, 10, 20) and (5, 10, 30). The technical meaning and usage rules of the two moving average combinations are the same, and the results are good. The most widely used in the market. Its main function is to observe the short-term trend of stock prices (stock index), such as what changes will happen to the trend of stock prices in 1 to 3 months.

Generally speaking, in a typical ascending channel, the 5-day moving average should be the center of multi-party protection, otherwise the upward strength is limited; the 10-day moving average is an important support line for the bulls, and the 10-day moving average is effectively broken, and the market may turn weak.

In the short market, when the sentiment is low, the resistance level for a weak rebound should be the 10-day line. The 20-day line or the 30-day line is an important indicator of the short-term and mid-term trend of the market. In the short term, long and long; when the 20-day or 30-day moving average is sloping downward, short-term short-term shorts are required.

There are two kinds of medium-term moving average combinations (10, 30, 60) and (20, 40, 60). The medium-term moving average combination is mainly used to observe the trend of the mid-term operation of the market or individual stocks, such as what will happen to the trend of the market or individual stocks in 3-6 months Variety. Generally speaking, the mid-term moving averages are arranged in a long position after the combination, indicating that the medium-term trend of the market or individual stocks is good. At this time, investors should look more and do more in the medium term; conversely, when the mid-term moving average portfolio is in a short position, it indicates that the mid-term trend of the market or individual stocks is weak, and investors should be short and short in the medium term.

From a practical sense, using mid-term moving average combination analysis to study the trend of the market or individual stocks is more accurate and reliable than short-term moving average combination. For example, when the market bottoms out, if you are unsure about the rebound or the reversal, the mid-term moving average combination will help you a lot. When the 30-day line crosses the 60-day moving average, there will be a relatively decent intermediate market. When the mid-term moving average is glued upward, the big market will come.

There are two long-term moving average combinations (30, 60, 120) and (60, 120, 250). The long-term moving average combination is mainly used to observe the medium and long-term trends of the market or individual stocks, such as what will happen to the stock price trend over half a year.

Generally speaking, when the moving averages in the long-term moving average combination form a golden cross and become a long-term arrangement, it means that the market is optimistic about the long-term trend of the market or individual stocks. At this time, investors should maintain long-term short-short thinking and encounter intraday shocks or callbacks , We must dare to absorb on dips; on the contrary, when the long-term moving average combination has a death crossover and becomes a short-term arrangement, it means that the market is bearish on the long-term trend of the market or individual stocks. At this time, investors should maintain the long-term long-term thinking and encounter the market. In the middle of a shock or a rebound, it is necessary to stick to rallies to lose weight.

The short, medium and long-term moving averages are divided into short, medium and long-term moving averages.

Special combined moving average weekly moving average, monthly moving average or time-sharing moving average are called special moving averages. There are 5-week, 10-week, May, October or 5-unit 10-unit lines.

Special moving averages are generally not used alone, they often appear in combination. Commonly used are 5-week, 10-week, 20-week or 5-week, 10-week, and 30-week combinations. When analyzing the trend of the monthly line, there are commonly used combinations of May, October, and 20 lines or combinations of May, October, and 30 lines; when analyzing 5, 15, 30, and 60-minute K lines Commonly used combinations of 5-unit, 10-unit, and 20-unit moving averages or 5-unit, 10-unit, and 30-unit moving average combinations are commonly used in trends.

The function of the special combination moving average mainly makes up for the shortcomings of the ordinary combination moving average analysis function. Generally speaking, the weekly moving average combination and the monthly moving average combination are suitable for the study and judgment of the long-term movement of the market or individual stocks. Compared with the daily moving average combination for the study and judgment of the movement of the large market individual stocks, they have a more brief and clear indication of the market. The time-sharing moving average combination is suitable for the study and judgment of the ultra-short-term operation trend of the market or individual stocks. Compared with the daily moving average portfolio, it can observe the momentary changes of the market or individual stocks in a more subtle way, so that investors can take corresponding measures as soon as possible.

List of moving average graphs

Features: Appearing in the uptrend, the 3 moving averages are in an upward arc shape.

Long signal, continue bullish

Operation: You can actively do long in the early and mid-term of the long sequence, and you should do more cautiously in the later period.

Short list

Features: Appearing in a downtrend, the 3 moving averages form a downward arc.

Short signal, continue to bearish

Operation: The main thing is to wait and see in the early stage, and be cautious to short in the later stage.

Golden cross

Feature: At the beginning of the rally, the short-term moving average crosses the medium and long-term moving average from bottom to top. If the medium and long-term moving average also bends upward, the signal sent out is more meaningful

Bottom signal, bullish outlook

Operation: A “golden cross” in the later stage of the sharp decline in stock prices can be actively long; medium and long-term investors can buy when the signal appears in the weekly or monthly K line.

Supplement: The greater the angle at which the two cross (the angle between the intersection and the horizontal plane), the stronger the short-term upward signal. The “golden cross” of the long-term moving average is stronger than the “golden cross” of the short-term moving average. (3)>(2)>(1)

Death cross

Features: In the early stage of the decline, the short-term moving average crosses the medium and long-term moving average from top to bottom. If the medium and long-term moving average also bends downward, the signal sent is more meaningful.

Peak signal, bearish outlook

Operation: After the stock price has risen sharply, there will be a “death cross”, which can be actively shorted; medium and long-term investors can sell short when the signal appears on the weekly K-line.

The longer the moving average, the stronger the meaning of “death cross”.

(3)>(2)>(1)

Silver Valley

Features: Appeared in the early stage of the rise, consisting of three moving averages crossing, forming an irregular triangle with a pointed upward.

Bottom signal, bullish outlook

Operation: Silver Valley can generally be used as a buying point for radical investors.

Golden Valley

Features: Appearing after the “Silver Valley”, the irregular triangles of the “Golden Valley” are formed in the same way as the irregular triangles of the “Silver Valley”. The “Golden Valley” can be located close to the “Silver Valley” or higher than the “Silver Valley”.

Buy signal, the market outlook is bullish.

Operation: “Golden Valley” can generally be used as a buying point for prudent investors. The longer the time between “Golden Valley” and “Silver Valley”, the higher the position and the greater the potential for future stock price increases.

Death Valley

Graphical moving average indicators and operating essentials

Features: Appeared at the beginning of the decline, consisting of 3 moving averages crossing, forming an irregular triangle with a pointed downward;

Peak signal, bearish outlook

Operation: See this signal, you should actively short. Especially when the stock price rises sharply and the graph appears, it is even more necessary to stop the loss in time.

The sell signal is stronger than the death cross.

First bonding upward divergent shape

Features: It can appear either at the end of the sideways after a decline, or at the end of the sideways after a rise

Buy signal, the market outlook is bullish

Operation: aggressive investors can buy at the initial point of upward divergence; the longer the bonding time, the stronger the upward divergence; when upward divergence, if the transaction volume is amplified simultaneously, the signal reliability is stronger

First bonding downward divergent shape

Features: It can appear either at the end of the sideways after the rise, but also at the end of the sideways after the fall.

Sell ​​signal, bearish outlook

Operation: Regardless of whether activist investors or prudent investors see this signal, they should stop loss and leave the market in time.

Supplement: The longer the bonding time, the greater the downward divergence; when the downward divergence, if the transaction volume simultaneously enlarges, the market outlook will be even worse.

First cross upward divergence

Features: Appeared in the late period of the decline, the short, medium and long-term moving averages gradually converged and then diverged upwards.

Buy signal, the market outlook is bullish

Operation: Aggressive investors can buy at the initial point of upward divergence. The greater the angle of upward divergence, the greater the potential for market outlook; if there is trading volume to support the upward divergence, the signal reliability is stronger.

First cross downward divergence

Features: Appears in the late stage of the rally, the short, medium and long-term moving averages gradually converge from upward divergence and then diverge downward

Sell ​​signal, bearish outlook

Operation: When investors see this signal, they should go short in time and exit the wait and see. Once a downward divergence is formed, there will often be larger declines.

Diverging upward

Graphical moving average indicators and operating essentials

Features: Appears in a rising trend, buy signal, continue to bullish

Operation: The best buying point for the moving average to diverge upward again should be the second upward divergence. If the moving average has a third and fourth upward divergence, the strength is not as strong as the second divergence, so buy with caution.

Supplement: The longer the bonding time, the greater the potential for continued growth. The “again” referred to by “re-bonding upward and diverging” is generally the second time, and a few are the third and fourth times. Their characteristics and technical meanings are the same. .

Glue down and diverge again

Features: Appeared in a downtrend, sell signal, continue to bearish。

Operation: After the stock price has fallen sharply, the moving average will stick downwards and diverge again, and only moderate shorts can be used to prevent short traps.

Supplement: The “again” referred to by “re-bonding downward and diverging” is generally the second time, with a few being the third or fourth time. Their technical meaning and characteristics are the same.

Cross again and diverge upward

Features: Appears in a rising trend, buy signal, bullish outlook

Operation: The moving average diverges upward again, which is a better buying point for both activist and prudent investors. Investors can buy as soon as they diverge upwards, with less risk.

Supplement: The longer it has been since the last upward divergence, the greater the potential for continued growth.

Cross again downward divergence

Features: Appeared in a downtrend, sell signal, continue to bearish

Operation: After the stock price has fallen sharply, the moving average crosses and diverges again. You can go short appropriately to prevent the short trap.

Supplement: Generally speaking, the probability of success in selling is the highest when the first downward divergence occurs, and the probability of success is lower as the next step.

Uphill climbing

Features: Appears in a rising trend, long signal, bullish outlook

Operation: Actively go long, as long as the stock price does not rise excessively, those with chips can hold stocks to rise; holders of coins can buy on dips. The smaller the slope, the more stamina of the upward momentum.

Downhill landslide

Features: Appears in a downtrend, short signal, bearish outlook

Operation: Go short in time, as long as the stock price does not fall excessively, you should exit and wait and see.

Rising Waves

Features: Appears in a rising trend, a long signal, and the market outlook is bullish.

Operation: As long as the stock price does not rise excessively, those with chips can hold stocks to rise; currency holders can buy at the long-term moving average of the stock price decline.

The more regular the wave shape when rising, the more reliable the signal.

Descent

Features: Appears in a downtrend, short signal, bearish outlook

Operation: As long as the stock price does not fall excessively, it can be sold when the stock price hits the long-term moving average.

Acceleration

Features: Appears in the late period of the rise and before the acceleration, the moving average system is slowly or uniformly rising; during the acceleration, the distance between the short-term moving average and the long-term and medium-term moving average increases.

Peak signal, bearish outlook

Operation: Holders can sell rallies in batches. If they find a short-term and mid-term moving average bend, they should sell out in time; holders should not blindly chase the rise.

Supplement: Before the accelerated rise occurs, the greater the stock price or index rise, the more reliable the signal of the market outlook decline.

Accelerated decline

Features: Appeared in the late period of the decline and before the accelerated decline, the moving average system showed a slow decline or a uniform decline. When the decline accelerates, the distance between the short-term moving average and the medium and long-term moving average is getting bigger and bigger;

Bottom signal

Operation: It is not easy for holders to sell stocks. Coin holders can first buy some stocks when the stock price is accelerating, and when the stock price bottoms out in the future, they can follow up.

Supplement: Before the accelerated decline occurs, the greater the stock price or index decline, the more reliable the signal.

Rapid rise

Features: Appearing in a rising trend, the short-term moving average is rising rapidly, and the distance from the medium and long-term moving average is rapidly increasing.

Turn signal

Operation: Those who have stocks can hold on to change. Before the short-term moving average has a bend, they can not sell or make some weight reduction operations; once the short-term moving average is down, they should exit in time. Holders should not blindly chase the rise.

Supplement: The faster the ascent, the greater the possibility of turning. As soon as the 5-day moving average has a bend, stock prices often fall back quickly.

Rapid decline

Features: Can appear in the early stage of the downtrend or in the late stage of the downtrend

Temporary stop or turn signal

Operation: The rapid decline provides an opportunity for short-term operations. Aggressive investors can buy short positions while they are low. Shareholders should not sell when the stock price drops rapidly. You can exit when the stock price rebounds.

Supplement: Under normal circumstances, the appearance of this graph will have two results: a short-term stop falling and rebound, and then continue to fall after the rebound; b forming a “V-shaped” reversal. Among them, type a is more common; type b is rare.

Moon shape

Features: Appears in the consolidation period, short-term and medium-term moving averages move slightly upwards,

Bullish signal, bullish outlook

Operation: You can buy in batches. When the stock price rises in the future, it is an overweight buy. This signal appears first in the week K and the month K, and the potential for the future stock price to rise is greater.

Dark clouds

Features: Appears in the consolidation period, the short and medium-term moving averages move slightly downwards and forwards.

Bearish signal, bearish outlook

Operation: As long as the stock price is not falling excessively, you should exit as soon as possible when you see this graph; if such a signal appears on the K-line of the week, the K-month and the K-line, there will be more room for the future stock price to fall.

Jiaolong goes to sea

Feature: In the late period of the decline or the late consolidation period, a Yang line rises up, swallowing the short, medium and long-term moving averages at once, and the closing price has closed above several moving averages;

Reversal signal, bullish outlook

Operation: aggressive investors can boldly follow up, while prudent investors can observe for a period of time and wait for the stock price to stabilize in the future before buying.

Supplement: The longer the Yangxian entity, the more reliable the buy signal will be. Generally, large volume support is required. If there is no large amount of synchronization, the credibility is poor.

Guillotine

Features: Appeared in the late period of rising or high consolidation period, a Yinxian cut off the short, medium and long-term moving averages at once, and the closing price closed below these moving averages;

Reversal signal, bearish outlook

Operation: After seeing this graph, both activist and prudent investors cannot continue to go long, and try to exit the wait and see as soon as possible.

Supplement: If the trading volume increases during the decline, there will be more room for decline in the future.