RSI was first used in futures trading. Later, it was found that using this index to guide stock market investment was also very effective, and the characteristics of this index were constantly summarized and summarized. The following small series will bring you detailed practical skills of rsi indicators, I hope you like it!
Detailed explanation of rsi index in actual combat skills
Relative strength index RSI is a technical curve based on the ratio of the sum of the rising range and the falling range in a certain period. It can reflect the prosperity of the market in a certain period. So what is the use of rsi indicator three lines?
Detailed description of rsi index
RSI index is based on the principle of supply and demand balance, which measures the percentage of the total range of stock price increase to the average of the total range of stock price change in a certain period to evaluate the strength of long and short forces, and then prompts specific operations. On the surface, the application rules of RSI are complicated, including the judgment principles of intersection, value, shape and deviation.
Generally speaking, judging the rsi value between 40 and 60 is of little use in the detailed explanation of the RSI index of actual combat skills. According to the application principle of RSI, when RSI breaks through the 50 dividing line from below 50, it means that the stock price has turned stronger; RSI fell from above 50 to below the 50 boundary, indicating that the stock price weakened.
As for the use of three-line rsi indicators, the three lines are: white line, generally 6 antennas; Yellow line, generally 12 antenna; The purple line is generally the white line of the 24-day indicator. On the 6th and12nd, when the RSI indicator line breaks through the 24th line near the RSI value of 50, if there is a golden cross at this time, it is often a buy signal; On the contrary, forming a dead fork is a good selling signal.
What are the actual combat skills of the Bollinger Band?
Generally speaking, the Brin Middle Track represents the main running trend of the market. When the middle rail of the bollinger band breaks through from below, it shows that the strong characteristics begin to appear. The point will rise, and it is recommended to buy on dips; When the price crosses the upper rail line, it will form a retracement, which is a selling signal, and when the price crosses the lower rail line, it will form a rebound, which is a buying signal.
When the price rises along the resistance line, although there is no breakthrough, it is also a selling signal to start turning back. When the price falls along the support line, although it does not fall below, it is also a buying signal that begins to turn back; When the price runs above the bollinger band for a period of time. Once the price turns down and breaks through the upper rail of the bollinger band, it indicates that the short-term strong market may end and will plummet in the short term.
When the price runs on the lower rail of the bollinger band for a period of time. If there are signs of a U-turn in the direction of price movement, it means that the short-term decline has stabilized and investors have bought a small amount on dips; When the price has been above the middle rail line and moves with the middle rail line, it shows that it is in the process of strong rise. As long as the price does not fall below the middle track, investors can resolutely be bullish all the way.
Practical skills of speculating foreign exchange in one minute
1, a city with balanced income. The day was a balanced city that fluctuated up and down, but the closing price was high (or low), indicating that one party had won the imaginary victory. Then the early morning of the next trading day is usually beneficial to the closing party. Therefore, it is a good move to open a position in line with the direction of liquidation.
2. Strong trend trading day. From opening to closing, the market is controlled by unilateral forces, and the exchange rate moves in one direction. This is an excellent opportunity to take advantage of the situation and take a little risk. Because the value range of the next trading day is usually continuous, it can ensure that there is enough time to make a profit and quit without suffering losses.
3. Gap. In the opening stage, due to the fierce entry of bulls, a gap is formed, which is manifested as support or resistance. Building a position along the gap direction also has a great chance of winning. However, because there are several types of gaps, such as ordinary, breakthrough, relay and exhaustion, traders had better combine the overall environment and distinguish clearly before acting.
4. Break through the consolidation area. When the consolidation zone that has been maintained for some time is broken, the exchange rate usually changes rapidly and violently. This is because market participants' views on value have changed, and long-term forces have stepped in with confidence. At this time, you should enter the venue in time along the breakthrough direction and enjoy the fun of "sitting in a sedan chair".