By using the change of red and green columns, we can judge the buying opportunity: when MACD is still a green column, and the green column is getting shorter every day, and it is about to become a red column, the red column has not come out yet, and the green column has shrunk almost.
Of course, investors can't just judge trading opportunities by red and green columns. If there is a bottom deviation, moving average gold fork, MACD gold fork, etc. When the above-mentioned market appears, the expectation of rising is relatively strong. It should be noted that because MACD is a long-term indicator, the price difference between the buying point or selling point and the highest and lowest prices is very large. When the market fluctuates or consolidates, buying and selling signals will be too frequent.
MACD absorbs the advantages of EMA. When the trend is obvious, the trading effect of EMA is very good, but once the bull market consolidates, the signals sent by EMA are too frequent and extremely inaccurate, which will easily cause fatal losses to investors under the leverage effect of margin in the futures market.
MACD can do:
1. In the cowhide market, the false and frequent deceptive signals of the moving average can be overcome to some extent;
2. In the trend market, the success of the moving average can be guaranteed to the maximum extent.
MACD indicators contain several basic elements, which unfamiliar investors should first understand:
Everyone's computer at home has a black background, the corresponding fast line DIFF is a white line, and the slow line DEA is a yellow line.
Golden fork: the first day when the red column appears is when the fast DIFF passes through the slow DEA.
Dead fork: the fast line DIFF passes through the slow line DEA, which is the first day when the green column appears.
Application method of ACD index
1, basic form
In MACD, when the white line is lower than the yellow line, it is a short market, and when the white line is higher than the yellow line, it is a long market; When the yellow-white line is below the zero axis, it is a weak market, and when the yellow-white line is above the zero axis, it is a strong market.
This is easy to understand. The white line is below the yellow line, which means that DIF has fallen faster than EDA, which means that the strength of buying is still very weak in the short term, and the strength of selling is very strong, and vice versa. The yellow-white line is below the zero axis, indicating that the short-term market cost does not exceed the long-term market cost and cannot be considered as strong.
2, golden fork, dead fork
This is the most commonly used form of MACD. Everyone should be more aware that the white line uploaded from below is a golden fork, and vice versa. The golden fork of the stock shows that the stock price has risen, and the short-term buying intensity has been greater than the long-term buying intensity. Therefore, at this time, there is a greater chance of long-term profit.
If the yellow-white line runs below the zero axis for a period of time and is far away from the zero axis, it means that the stock price has fallen for a period of time. At this time, the white line rises and crosses the yellow line, indicating that the stock price has bottomed out and the willingness to buy funds has increased. Overall, this is a long-term buying point.
If the yellow and white thread is wound on the zero axis for a long time, it means that the main force is sucking up and washing dishes here. At this time, the golden fork appears, which is likely to be the signal of the end of consolidation and needs to be focused on.
When the yellow-white line is far below the zero axis, the golden fork runs directly above the zero axis and falls back to the vicinity above the zero axis to reappear. This is the so-called aerial refueling trend, which can be used as a reference for short-term operation.
3. Bottom deviation and top deviation
Bottom deviation means that the stock price is lower than the previous wave, but the top deviation means that the stock price is higher than the previous wave but the CIF wave front is higher than the previous wave. Bottom deviation is the signal when buying low, and top return is the signal after selling.
Beginners remember a formula with MAC wave elements: "A center is two basic points and four basic principles."
A center: centered on axis 0.
Two basic points: top deviation and bottom return
Four basic principles: buying point, selling point, risk point and stop loss point.
The extremely slow line running in the head of axis 0 is a multi-scalp field; It is transmitted to the empty scalp area under the 0-axis scale.