1. How should investors use the DIF line to see the market?
When the DIF and DEA are above the 0 axis, it belongs to a bull market, and when the DIF line crosses the DEA line from bottom to top, it is a buy signal. When the DIF line crosses the DEA line from top to bottom, if the two lines are still running above the 0 axis, it can only be regarded as a short-term decline, and the trend inflection point cannot be determined. Whether to sell or not at this time needs to be judged by combining other indicators.
2. When the DIF and DEA are below the 0 axis, it is a short market. When the DIF line crosses the DEA line from top to bottom, it is a sell signal. When the DIF line crosses the DEA line from bottom to top, if the two lines are still running below the 0-axis, it can only be regarded as a short-term rebound, but the inflection point of the trend cannot be determined. At this time, whether to buy or not needs to be judged by combining other indicators.
3. The columnar line shrinks and enlarges. Generally speaking, the continuous contraction of columnar lines indicates that the strength of trend operation is gradually weakening. When the color of the column line changes, the trend determines the turning point. However, when using some short-term MACD indicators, this view cannot be fully established.
4. Form and deviation. MACD indicators also emphasize morphology and deviation. When the DIF line and MACD line of MACD indicators form a high bearish pattern, such as head and shoulders, double heads, etc. We should be vigilant. When the morphological MACD indicator DIF line and MACD line form a low bullish pattern, you should consider buying. When judging the shape, DIF line should be the main line, supplemented by MACD line. When the price continues to rise and the MACD indicator goes out of wave after wave, it means that the top deviation appears and the price will turn around in the near future. When the price continues to decrease, but the MACD indicator goes out of a wave-by-wave market, it shows that the bottom deviation appears, and the price is about to end the decline and turn to rise.
5. Cowhide market indicators will be distorted. When the price does not run from top to bottom or from bottom to top, but keeps running horizontally, we call it cowhide market. At this time, the MACD indicator will produce false signals, and the intersection of the indicator DIF line and MACD line will be very frequent. At the same time, the retraction of columnar lines will occur frequently, and the color will often turn from green to red or from red to green. Therefore, the MACD indicator at this time is in a distorted state, and its use value will be reduced accordingly.