There are so many concepts in the stock market that it is difficult for novice investors to understand their meanings in actual communication if they don't learn them. Share some information below for your reference.
Summary of trend chart analysis technology
The specific steps are as follows: first look at the graph with large time dimension, then look at the graph with small time dimension, first look at the weekly line, then look at the daily line, then look at the hourly line, and then look at the minute line. Every time dimension should be looked at, and the specific trading points should be found on the minute line.
Observing the graph of each time dimension is divided into three steps.
The first step is to determine the trend on the chart.
It depends on the bare map, that is, the map without any technical indicators. This is very important. With the technical indicators, we can't see the true colors of the drawing clearly, so we should delete the technical indicators from the main drawing. Identify three trends, upward trend, downward trend and sideways trend. Among them, there are two kinds of sideways trends, one is a sharp shock, and the other is a narrow consolidation. It is very important to identify interval trends, because the trend market is generated by interval trends, which is a cyclical process. In any time dimension, the trend is followed by the interval, and the interval is followed by the trend, and so on. The interval is a balance, and the market goes from breaking the balance to a new balance, and then to breaking the new balance. This is a natural market cycle process.
So we must first identify the trend chart, from an upward trend, from a downward trend, from a sideways trend.
The second step is to determine the transaction volume corresponding to the trend.
Looking at the volume is not a single one or two, but a stage. One or two trading volumes are of little significance, but periodic trading volumes are of great significance. The first step is to determine the trend on the chart. The second step is to look at the volume of the corresponding trend stage. For example, what is the turnover of the corresponding stage in an upward trend stage in the chart? Is it gradually increasing or decreasing?
The third step is to look at the technical indicators.
Traders with a good sense of disk have seen the price trend and trading volume, and have a good idea of the overall trend and specific trading snacks. It is no longer necessary to look at technical indicators. It is the system traders who look at the technical indicators here, because many trading systems are composed of indicators. I am also a system trader, so I have to go to the third step to see the technical indicators.
There are two kinds of indicators, one is the trend indicator and the other is the shock indicator. Corresponding trend trading system, and mean regression trading system. I am a trend trader, so I only look at trend indicators.
Indicators have two key functions. The first function is to form a specific trading point in some trading systems, but when the index reaches a specific value, it sends a trading signal. According to this signal, the second function is to passivate the bare graph analysis in the first step and filter out some parts with sudden and random price fluctuations and some false signals. The index is lagging behind, but it is relatively stable and reliable in identifying trends.
The above is a strict analysis procedure, which must be analyzed in strict accordance with the procedure, and the order cannot be reversed, otherwise the thinking will be confused. The most critical part is the mentality when analyzing the trend chart, and there can be no preconceived views. Look at what actually happened in the market itself, not the preconceived ideas formed in my mind after reading fundamental information and news comments. This is very important, don't argue with the market, just don't argue with the trend chart.
John murphy's technical analysis list
This list is not exhaustive, but it collects the most important aspects that deserve our attention. The clue that finally makes analysts make up their minds is often an insignificant factor that has long been forgotten by everyone. Analysts must constantly explore various clues of future market changes. John. potato
1, what is the direction of CRB futures price index?
2. What is the direction of the futures market group to which this market belongs?
3. What is its continuous weekly and monthly charts?
4. Is the main trend, medium trend and small trend rising, falling or extending horizontally?
5. Where are the important support and resistance levels? 6. Where are the important trend lines or pipeline lines?
7. Does the trading volume and interest in holding positions verify the price change?
Where are the price retreats of 8.33%, 50% and 66%?
9. Is there a price difference on the map? What type do they belong to?
10. Is there any sign of a big reversal on the map?
1 1. Is there any sign of a persistent pattern on the map?
12, where is the price target of the above form?
13. What direction does the moving average point to?
14. Is the swing index overbought or oversold?
15. Is there any deviation between the swing indexes?
16, contrary opinion (article source: 767 Stock Learning Network) Does the diagram show that the market is in an extreme state?
17. What shape are Eliot's waves?
18. Is there any obvious three-wave structure or five-wave structure?
19, where is Fibonacci's retreat position and price target?
20. Are there periodic peaks or valleys at present?
2 1. Does the market show the phenomenon that the peak shifts to the right or to the left?
22. What is the direction of computer trends: upward, downward or horizontally?
23. What is the situation on the point map?
When you conclude that the market is bullish or bearish, then find out:
1. How will the current market trend evolve in the next one to three months?
I decide whether to buy or sell in this market.
3. What is the number of trading contracts?
4. How much risk do I intend to take in the case of wrong judgment?
5. Where is my profit target?
6. When did you enter the market?
7. What kind of instructions are used?
8. Where should the protective stop loss order be set?
Chart Analysis —— "Deviation Characteristics" of Decryption Technical Indicators
When using technical indicators, we often encounter the phenomenon that the trend of futures (stocks) deviates from the trend of indicators. Deviation is the inconsistency of trends. Once the characteristics of deviation appear, it is a clear signal to take action.
There are usually two kinds of indicators deviating, one is the top deviation and the other is the bottom deviation. Top divergence usually occurs at the high end of futures (stock) prices. The current (stock) price high is higher than the previous high, while the index high is lower than the previous high. In other words, if the appropriate indicator is at a high level, forming two peaks, one of which is lower than the other, but the price of this period is higher than the other, which means that the indicator suspects that the current rise is very strong outside, suggesting that the price of this period (stock) will soon reverse and fall, which is the so-called top deviation. This is a strong selling signal. On the contrary, the bottom deviation generally appears at the low end of the period (stock) price. When the low point of the previous period (stock) price is lower than the low point of the previous period, and the low point of the index is lower than the low point of the previous period, that is, when the index thinks that the period (stock) price will not continue to fall, it implies that the period (stock) price will rise in reverse, which is the bottom deviation and is the signal to start opening positions. Indicators that can form obvious deviation characteristics of technical indicators include MACD, W%R, RSI, KDJ, etc. Their forms all have the characteristics of deviating from futures prices.
Problems needing attention when deviating from characteristics:
1, the effectiveness of various technical indicators is not the same. When analyzing technical indicators, relatively speaking, the deviation between RSI and KDJ is used to judge the success rate of market turning.
2. The deviation of indicators is generally reliable in strength. That is, when the futures (stock) price is at a high level, it usually takes only one deviation to confirm the reversal pattern, while when the futures (stock) price is at a low level, it usually takes many deviations to confirm the reversal pattern.
3. The deviation after passivation is more accurate. If we operate completely according to the deviation characteristics, it will often lead to great mistakes. This situation is especially easy to happen when the current (stock) price has a tendency to plummet or skyrocket. After the KDJ indicator may be passivated at a high or low level, the current (stock) price still rises or falls. In fact, at this time, once there is a deviation feature, it is very effective, especially the KDJ indicator combined with the RSI indicator to judge the trend of the futures price. KDJ indicator has a strong pointing function in judging the top and bottom.
4. Pay attention to identify false deviations. Usually, false deviation often has the following characteristics: first, it deviates in a certain time period and does not deviate at other times. For example, the daily chart deviates, but the weekly chart and the monthly chart do not deviate. Second, there is a deviation without entering the high-level area of the index. We are talking about determining the top and bottom by deviation. It is more effective to deviate from the technical index above 80 or below 20, and it is best to passivate it after a period of time. Between 20 and 80, it is often characterized by strong market adjustment rather than deviation, and the market outlook is likely to continue to rise or fall. 3. One indicator deviates, while other indicators do not. When various technical indexes deviate from each other, the time of deviation is often different because of their different index designs. KDJ is the most sensitive, followed by relative strength, and MACD is the weakest. The guiding significance of single index deviation is not strong. If all the indicators deviate, it is more likely that the price will bottom out during this period.