DMI index can accurately tell us the changing trend of the future market, thus providing investors with appropriate trading opportunities and grasping the changing trend of the market. Therefore, combining these two indicators can reduce investment risk, improve operational safety and find the best trading point.
Moving average is widely used in foreign exchange market. It can send out long and short signals in time and clearly. If it can be combined with DMI and VOL indicators, it can achieve unexpected results.
In terms of operation, when the horse sends out the signal to do more, it gets the cooperation of volume amplification, which shows that the market has sufficient upward energy and strong explosive power; If the trading volume is not effectively amplified when you send a long signal with the horse, the upside is weak, or there is a suspicion of fake cattle. On the other hand, even if the trading volume is enlarged, if the horse or horse does not have the buying characteristics, it should not be easily involved.
After deeply understanding the above characteristics of indicators, we should always remember that the combination of multiple indicators can ensure that the error rate reaches the minimum at the moment you open the position. Unless you can make a profit in an instant, there is no way to guarantee that the subsequent transactions will also be profitable. For ultra-short-term traders, it is very important to achieve the ultimate stop loss. After the opening of the warehouse, within a limited time, the direction begins to change in an unfavorable direction or does not run in the direction expected by the index, which is usually evidence that the index signal is invalid.
First, the combination of quantity and price is the most common collocation. According to experience, especially the general trend in the day, the market must be driven by the volume first. If you observe the intraday time-sharing line, you will find a feature. All important price highs and lows must be amplified by volume first. Most of the trend outbreaks are price inflection points. So the explosion volume must be Changyang or Yin Chang, which is often the price recognized and laid out by the market.
The application method is: when MACD, MA and VOL indicators are mutually verified and unified, it is a reliable trading decision. On the contrary, it should be used with caution.
Second, the most commonly used price derivative indicators are shock indicators and trend indicators, which is of course contradictory. The subtlety of the market lies in the constant deduction and transformation between shocks and trends. The trend of small cycle may only be the shock of large cycle or it may be interpreted as a big trend, which brings us many difficulties in using indicators.