(1) top deviation
When the trend of foreign exchange on the K-line chart of exchange rate is higher than the previous peak, the exchange rate has been rising, while the trend of the graph composed of red columns on the MACD indicator chart is lower than the previous peak, that is, when the high point of exchange rate is higher than the previous high point and the high point of MACD indicator is lower than the previous high point, this is the so-called top deviation phenomenon. Top deviation is generally a signal that the exchange rate is about to reverse at a high level, indicating that the exchange rate is about to fall in the short term, which is a signal to sell foreign exchange.
(2) Bottom deviation
Bottom deviation generally appears in the low area of exchange rate. When the trend of foreign exchange on the K-line chart of exchange rate is still falling, and the trend of the graph composed of green columns on the MACD indicator chart is that the bottom is higher than the bottom, that is, when the low point of exchange rate is lower than the previous low point, the low point of the indicator is higher than the previous low point, which is called the bottom deviation phenomenon. Bottom deviation is generally a signal that the exchange rate may reverse upward at a low level, indicating that the exchange rate may rebound upward in the short term, which is a signal to buy foreign exchange in the short term.
In practice, the deviation of MACD indicator is usually reliable in a strong market. When the exchange rate is high, it is usually confirmed that the exchange rate is about to reverse once, while when the exchange rate is low, it is usually confirmed after repeated deviations. Therefore, the accuracy of the top deviation of MACD indicator is higher than that of the bottom deviation, and investors should pay attention to it.
In short, the so-called deviation is the opposition between the two. Interpretation of MACD indicators of foreign exchange;
1, bottom deviation: the exchange rate continues to fall in the low area and the indicator book continues to rise, and the indicator shows the opposite trend to the exchange rate;
2. Top deviation: the exchange rate continues to rise in the high region while the indicators continue to fall, and the indicators show the opposite trend to the exchange rate;
Special instructions:
When 1 and DIF deviate from the exchange rate, the signal generated has high reliability;
2.DMA, MACD and TRIX constitute a set of indicators and verify each other.
The deviation between macd top and bottom is essentially the slowdown of exchange rate rise and fall.
The essence of macd indicator is the medium-term trend indicator.
Interpretation of macd indicator: dif can be regarded as 5-day moving average, dea is 10 moving average, and axis 0 is 60-day moving average. Careful observation will reveal how similar they are. Whenever dif and dea cross 0 week, it is often the time when the 5, 10 moving average crosses the 60-day moving average.
The essence of top-bottom deviation is that the speed of rising and falling is slow; On the moving average, it is reflected in the decline of deviation rate, and the medium-term moving average gradually approaches the short-term moving average; In the K-line form, there are often horizontal, triangular, box, wedge, flag and other forms.
After the completion, the exchange rate started for the second time. Although the exchange rate may hit a new high or a new low, the speed range is often not as big as the first time, so the dif and dea that form macd cannot be farther away from the 0 axis; The short-term moving average cannot be further away from the medium-term moving average, thus forming a macd top-bottom deviation.
The meaning behind it may be that the main funds have been unable or unintentional to pull up or suppress again, which is likely to lure more and lure the empty market.
The top-bottom deviation at the circumference or higher level is more effective, and the smaller the level, the lower the effectiveness.