RSI was first used in futures trading. Later, it was found that using this index to guide stock market investment was also very effective, and the characteristics of this index were constantly summarized and summarized. Now, RSI has become one of the most widely used technical indicators for investors. According to the general principle of investment, investors' buying and selling behavior is a reflection of the comprehensive results of various factors, and the change of the market ultimately depends on the relationship between supply and demand, while RSI index is based on the principle of supply and demand balance, which measures the percentage of the total range of stock price increase to the average of the total range of stock price change in a certain period, so as to evaluate the strength of long and short forces and then prompt specific operations. On the surface, the application rules of RSI are complicated, including the judgment principles of intersection, value, shape and deviation.
definition
The RSI index was initiated by Wells Wilde and published in his book "New Concept of Technology Trading System". (version 1978) The relative strength index RSI is a technical curve made according to the ratio of the sum of the rising and falling ranges in a certain period. It can reflect the prosperity of the market in a certain period.
use
Regarding the use of RSI, first observe the positional relationship between two or more curves with different parameters. The use of RSI curves with different parameters is exactly the same as the moving average. If the short-term RSI curve with smaller parameters is above the long-term RSI curve with larger parameters, then the current market is a bull market. On the contrary, it is a short market. Because the larger the parameters, the larger the time range of RSI calculation, so the conclusion will be more reliable. But like EMA system, we can't avoid the shortcoming of slow response, so we should pay attention to it during use.
RSI value to determine the direction of operation.
The RSI value divides the range from 0 to 100 into four regions: extremely weak, weak, strong and extremely strong. The dividing line between "strong" and "weak" is 50, but the boundaries between "extremely weak" and "strong" and "extremely strong" will change with the change of RSI parameters. The division of regions is different with different parameters. Generally speaking, the larger the parameter, the closer the dividing line is to the center line 50 and the farther it is from l00 and 0. However, it should generally be in the range of15,30 to 70,85. If the RSI value exceeds 50, it means that the market has entered a strong market and can consider buying. However, if it continues to enter the "extremely strong" area, it is necessary to consider the extremes meet and prepare to sell. Similarly, if the RSI value is below 50, if it enters the "extremely weak" area, it means that it is oversold and should wait for an opportunity to buy.
Morphological analysis of RSI curve
When RSI curve forms head-shoulder top shape or multiple top (bottom) shape in high or low position, trading operation can be considered. The farther these patterns appear from the 50-axis, the higher the reliability of the signal and the less likely to make mistakes. All conventional K-line morphological analysis methods are suitable for the analysis of RSI curves. For example, the trend line on the K-line chart can also be used on RSI. The high and low points of RSI curve in rising and falling can be connected into a trend line, which also plays the role of support and pressure line. Once it is broken, you can refer to the K-line analysis method to judge whether the previous trend is over. Finally, judging the market from the deviation between RSI and stock price. Among various methods to judge RSI, the deviation between RSI and stock price is the most reliable method to judge the market. In the process of stock price rising, if RSI is at a high level, but it does not follow the stock price to form a higher high point, this shows that the stock price may have entered the final stage, and the top deviation is a relatively clear selling signal. The opposite of this situation is the bottom deviation. The RSI low level slowly rose. Although the stock price is still falling, RSI is no longer hitting a new low. At this time, it means that the decline has come to an end, and you can consider opening a position at an appropriate time.
Intersection of long-term and short-term RSI lines
Short-term RSI refers to RSI with relatively small parameters, and long-term RSI refers to RSI with relatively long parameters. For example, RSI on 6th and RSI on 12, RSI on 6th is a short-term RSI, and RSI on 12 is a long-term RSI. The intersection of long-term and short-term RSI lines can be used as a method for us to judge the market. 1, when the short-term RSI >；; In the long-term RSI, the market is a bull market; 2. When the short-term RSI
Principle and calculation of RSI
Relative strength index (RSI) is a method and index used to measure the relationship between market supply and demand and the buying and selling power. Calculation formula: N-day average closing price increase, N-day RSI = ——————————×100n average closing price increase +n-day average closing price decrease. From the above formula, we can know the technical meaning of RSI index, that is, upward force and downward force. If the downward force is great, the index will drop, thus measuring the strength of the market trend.
Application of RSI
1, according to the formula, 0≤RSI≤ 100. RSI = 50 is the dividing point between a strong market and a weak market. RSI & gt80 is usually set as an overbought area, and the probability of market reversal increases; RSI & lt20 is an oversold area, so the chances of market rebound increase. 2. Generally speaking, RSI turns down to be a selling signal, and RSI turns up to be a buying signal. But the application should proceed from the judgment of the overall situation. 3. The M-shaped trend of 3.RSI is a common peak shape in overbought areas; W-shaped trend is a common bottoming form in oversold areas. At this time, it is often seen that the RSI trend deviates from the price trend. Therefore, the deviation phenomenon is also a buying and selling signal. 4.RSI from bottom to top, one trough is higher than the other, forming a rising support line; RSI from top to bottom, a peak is lower than a peak to form a downward pressure line. Falling below the support line is a selling signal, and rising above the pressure line is a buying signal. 5.RSI crosses the 50 demarcation line for buying signal and breaks the 50 demarcation line for selling signal. 6. the n value of n-day RSI is usually 5 ~ 14 days. The greater the value of n, the stronger the sense of trend, but there is a tendency to lag behind, which is called slow line; The smaller the value of n, the more sensitive it is to change, but it is easy to produce a sense of drift, which is called the fast line. Therefore, the slow line can be compared with the fast line. If the two lines are in the same direction, the upward trend is stronger; If the two lines are in the same direction, the decline is strong; If the fast line crosses the slow line as a buy signal; If the fast line crosses the slow line, it is a sell signal. 7. Because of the design of RSI, even after RSI enters the overbought area or overbought area, the market price fluctuates greatly, and the change rate of RSI becomes slower and smaller, that is, the so-called passivation problem appears. Especially when it continues to rise or fall, it is easy to regret that buying and selling is "too hasty". The solution to this problem is to adjust the definition index of overbought area or overbought area only from the RSI index itself, such as above 90 and below 10; 2. The added value nRSI (n) = the average value of the closing price increase in n days ÷ (the average value of the closing price increase in n days+the average value of the closing price decrease in n days) × 100. By default, n is 6 and 14.
Main points of RSI analysis
Using VR index should be combined with other technical indexes to analyze the fluctuation of relative strength index value between 0 ~ 100. Generally, the relative strength index ranges from 30 to 70, of which 40 to 60 is more likely, and the chances of exceeding 80 or below 20 are rare. When the stock market goes through a period of decline, the relative strength index will continue to fall below 30 from a high level. If you break through 60 and confirm from the low position, it shows that the bulls have regained their upward trend. When the stock market rose for a period of time, the relative strength index also rose from the low level to above 80. If it fell below 40 from the high level, it indicated that the short-selling power regained the upside. When the change of relative strength index of high-priced area and low-priced area is inconsistent with the change of stock price, it shows that the general trend is about to reverse. The highest point in the relative strength index diagram has a strong back pressure effect; The lowest point of the relative strength index has a strong supporting role. If there is a price retreat in the bull market, the first line of defense for bulls is RSI = 50, the second line of defense is RSI = 40, and the third line of defense is RSI=30. If there is a price rebound in the short market, the first line of defense for the bears is RSI = 50, the second line of defense is RSI = 60 and the third line of defense is RSI=70. In the bull market, the low-point dense area formed by the decline of RSI value every time is also the first line of defense for bulls. In the bear market, the stock price is in the stage of rebound and consolidation, and the high point of RSI is also a line of defense for bears. The value of the consolidation phase is between 40 and 60. If the market is strong, the RSI value can often be above 80. Conversely, when the stock market is depressed, the RSI value is below 20.
Use RSI to buy and sell stocks
Let's take the value of RSI as an example: the value of RSI is between 0 and 100. This value can represent the strength of the long and short sides involved. For example, when RSI=50, the strength of both sides is equal, assuming that both sides are 50 people. When RSI=80, it means that the number of parties is 80 and the number of empty parties is 20. Obviously, when RSI = 80, everyone is multifaceted. This stock market is boiling. We can also get the meaning of RSI=20 and 0. We illustrate the practical significance of RSI by analyzing this example of number comparison. Let's start with the limit RSI= 100: RSI= 100, which shows that everyone is multifaceted. Everyone in the stock market knows that this is impossible. No one sells stocks. What stock market can it be? So someone has to sell the stock. Who will sell the stock? People who sell stocks must think that the current price is relatively high, and it is likely to fall or have enough profits. If they don't sell now, they may not be able to sell this price in the future. You may have contradictory views on the above analysis. Since RSI= 100 shows that everyone is optimistic, then this stock will definitely go up. If they are optimistic that this stock will continue to rise, then why sell it? Let's explain this problem clearly with data. If the current price of a stock is 10 yuan, when there are more bullish people than bearish people, that is, there are more people willing to buy than willing to sell, the stock will rise. Then, the stock will rise to 1 1 yuan. As a result, there are more optimistic people than bad people. The stock is still rising. 13 yuan, 14 yuan ... 20 yuan. At this time, through the recommendation of stock evaluation and the introduction of friends, more and more people are optimistic, and more and more ... this stock has been rising. 30 yuan, 40 yuan, 50 yuan ... 100 yuan, Ian technology rose to 65438. Obviously not. No matter how good, it will always stop rising. For example, when a stock rises from 10 yuan to 50 yuan, the RSI is close to 100. That is, when everyone is optimistic, at this time, someone will start to want to sell. Why? Because people with a lot of chips in their hands will think: if they don't start shipping when the popularity is high, if they start to fall, they won't be able to distribute so many chips in their hands. Therefore, even if everyone thinks that this stock will go up, some people will start selling stocks. Although he knew that this stock would go up, in order to cash in the profits of a large number of stocks in his hand, he must start selling before it reaches the top. Otherwise, his profits will go up in smoke. So many people expect this stock to rise to 50 yuan, especially those who have too many chips in their hands. He may start selling the stock at 45 yuan or lower. From this perspective, there must be many people who are ready to ship or have already shipped when they are still optimistic. Therefore, when RSI= 100 means that everyone is optimistic about this stock, there is a bigger shipping crisis lurking. Just like a balloon, when it is eaten to the maximum, the explosion crisis will follow. Once it starts to fall, this stock that everyone is optimistic about will have a landscape of "flying down three thousands of feet, and it is suspected that the Milky Way has fallen for nine days". Because countless experiences make the vast majority of stock market people understand this truth. How many people will suffer because they are too late to sell. Therefore, when a stock is pulled back at a high level, the person who has made a profit will sell it quickly, thus making the profit safe. Those who don't make high profits will quickly cut their meat and quit as long as they are active. From another point of view, when everyone is optimistic about a stock, that is, when the RSI is close to 100, the price of this stock often far exceeds the actual value of this stock. This situation is what we usually call overbought. The so-called overbought situation is that buyers buy stocks that they shouldn't buy. So in the case of overbought, once it falls, it is not surprising that the stock is not worth the price. Shows the situation of RSI= 100. Let's talk about RSI=80 or close to 80 high, which is easier to understand. As mentioned earlier, when RSI= 100, someone started shipping before that. When was before that? From the perspective of RSI, as a stockholder, since it is too late to sell when RSI= 100, why not start selling when RSI=95? Of course, this can be done. But if most people sum up this experience when RSI=95, who will buy it? If few people buy it, can you guarantee that your stock will be sold when RSI=95? Therefore, some people started selling when RSI=90. Similarly, people will start selling earlier and earlier. This is why general books often say that they are ready to sell when RSI=80. On the contrary, when RSI=20, it is also a good time to prepare for buying. Having said that, I will go back and explain the practical significance of RSI. It is easy to grasp the different values of RSI of different stocks. There are two very different stocks. For large-cap stocks and small-cap stocks, the same value cannot be used when buying and selling stocks. For large-cap stocks, when they are sold, they will be shipped at RSI=80, which can be clearly seen in Maanshan Iron and Steel Co., Ltd., because the plates are too big to be valued by 80% people. Moreover, there are many shareholders. In addition, the dealer has many chips and it is difficult to ship, so it is necessary to ship in advance. This is why the RSI of large-cap stocks is generally not very high. On the contrary, small-cap stocks are different. Generally, when RSI=80, it is a good time to purchase goods. It means that the dealer has collected enough chips. The fewer plates, the higher the RSI value, mainly because the chips are controlled and the downward pressure is difficult to stop the dealer's behavior. For example, Haihong Holdings, for example. RSI is as high as 99.98%. This means that the dealer has complete control. In a word, RSI can clearly tell you the comparison of bullish and bearish people at that time. As for this ratio, its meaning is different for each stock and different disk conditions. The knife cuts bread and fingers. The specific use will be improvised.
The true meaning of RSI index
In the process of using indicators, investors are often confused. Sometimes the indicators are seriously overbought, but the stock price continues to rise. Sometimes the indicator has been passivated in the oversold area for more than ten weeks, but the stock price has not stopped falling and stabilized. Here, the relationship between indicators and stock prices is confused. Indicators cannot determine the rise and fall of stock prices, but stock prices determine the operation of indicators. The stock price is the cause, the index is the result, and the cause can deduce the result. Tracing back from the results is putting the cart before the horse and may be meaningless. So, what is the real meaning of the use of indicators? The author believes that the trend is supreme, follow the trend and yield to the market. Don't try to blindly judge the time of rebound and callback by overbought, oversold and passivation of indicators before the trend of ups and downs has changed. You have to give in to the market and the trend, and the trend will not win. Of course, this is not to completely abandon the index, but to make full use of its auxiliary reference function. When the stock price trend continues to rise or fall, the indicator will continue to be overbought or oversold, and once the stock price turns, the indicator will also turn to buy and sell, thus providing a powerful technical reference for operation. This is the true meaning of indicator application. RSI relative strength index, founded by WellsWider, predicts the future price change direction according to the change of stock price in a specific period. RSI is actually to calculate the ratio of stock price rise and fall in a certain period of time, measure the physical strength within the price, and select strong stocks according to the principle of selecting the strong and eliminating the weak. Pay attention to: 1 when using in actual combat. RSI greater than 50 is a strong market, and more than 80 enter the overbought area, which is easy to form a short-term retracement; Below 50 is a weak market, and below 20 enters the oversold area, which is easy to form a short-term rebound. RSI was originally below 50, and then turned upward to break through the 50 boundary, indicating that the stock price has strengthened; RSI used to be above 50, and then turned down below the 50 boundary, indicating that the stock price weakened. The indicators of overbought and oversold are often passivated, and the value of RSI has little effect on judgment. Shanghai Science and Technology entered the overbought area on February 27th, 2002 +65438, and was passivated for 8 days, but it was the best time to intervene after the breakthrough. 2. Cross. Generally speaking, there are two kinds of RSI: long-term RSI and short-term RSI. Short-term RSI is greater than long-term RSI, which is a bull market, and vice versa. When the short-term RSI is in the oversold area below 20 and crosses the long-term RSI from bottom to top, it is a buy signal. When the short-term RSI is in the overbought area above 80 and crosses the long-term RSI from the top down, it is a sell signal. On June 23rd, 2002 +2002 1 October 23rd, the Shanghai Composite Index RSI made a cash fork, and sent out a bottoming signal in advance (see figure1). 3. Form. Morphological analysis has been widely used in RSI, which can be used as a trading signal according to the inverted shape of the head, shoulder, top or bottom, double head or bottom of the overbought or oversold area. Last year, when the Shanghai Composite Index bottomed out for the second time at 1346 and 1339, RSI had a W bottom in the oversold area. 4. Deviation. When the stock price is getting lower and lower, but the RSI is getting higher and higher, it is easy for the stock price to reverse and rise. When the stock price is higher than the wave, but the RSI is lower than the wave, it is easy to reverse the decline for the top deviation. This year, the Shanghai Composite Index went up after 13 1 1 bottomed out. After 17 hit the high point of 1492, RSI deviated from the top, so it turned down after hitting the high point of 1529 on March 4. When the Shanghai Composite Index bottomed out at 1339 last year, RSI also showed obvious bottom deviation. 5. Trend line. Connect two consecutive bottoms of RSI and draw a tangent inclined from left to right. When RSI falls below this tangent, it is a good selling signal. Connect two consecutive peaks of RSI and draw a tangent line inclined from left to right. When RSI breaks through this tangent, it is a good buying signal. In fact, this is only a short-term trading signal, and the mid-line effect is not very good. The Shanghai Composite Index RSI fell below the upward trend line from 13 1 1 on June 7 this year. Although this selling signal avoids short-term risks, it is obviously a better signal to leave the center line.
Shortcomings of RSI indicators
Because RSI index is very practical, it is loved by most investors. Although RSI indicators have many advantages, such as sending buy or sell signals before other technical indicators, investors should pay attention to that RSI can also send misleading information. For various reasons, this indicator also has blind spots in practical application. At present, there is no perfect technical analysis tool on the market, and neither is RSI. Indicators cannot determine the rise and fall of stock prices, and the change of stock prices is the fundamental factor that determines the operation of indicators. The most important function of RSI indicator is to show the basic situation of the current market, show whether the market is in a strong or weak position, or in a cowhide consolidation, and at the same time roughly predict whether the top and bottom are coming. However, the RSI indicator can only be a signal given after observing the market from a certain angle, and can only provide investors with an auxiliary reference, which does not mean that the market trend will definitely develop in the direction predicted by the RSI indicator. Especially when the market fluctuates violently, we should also refer to other indicators for comprehensive analysis, and we should not rely solely on the signal of RSI to make trading decisions. First of all, it should be noted that different time parameters of RSI indicators will give different results. Different investors have different personal preferences for the set time period. Theoretically speaking, the RSI index with short period is sensitive, but it oscillates more quickly and has poor reliability. Although the signal of RSI indicator with a long period is reliable, the sensitivity of the indicator is not enough and the response is slow, which often misses the opportunity to buy and sell. In addition, because RSI is based on the closing price, if the market fluctuates greatly and the upper and lower shadow lines are long, it is impossible for RSI to accurately reflect the changes in the market at this time. Second, the phenomenon of exponential passivation caused by overbought and oversold is easy to send out wrong operation signals. In the middle stage of "bull market" and "bear market", the RSI value rises above 90 or falls below 10 from time to time. At this point, fuzzy misleading information will appear after the indicator is passivated. If you follow this indicator, you may make mistakes, miss profit opportunities or enter the market too early and get stuck. Third, the trend of "deviation" between RSI index and stock price often lags behind. On the one hand, the market has reversed, but the "deviation" signal of this indicator may lag behind; On the other hand, under the influence of various random factors, sometimes the market really begins to reverse after several "deviations". At the same time, when judging the phenomenon of "deviation" of indicators, the number of "deviations" corresponding to real inversion is inconclusive. One, two or three deviations may have a trend change, which is difficult to confirm in actual operation. Fourthly, when the RSI value fluctuates around 50, the index often loses its reference value. Generally speaking, a value of RSI between 40 and 60 is of little use. According to the application principle of RSI, when RSI breaks through the 50 dividing line from below 50, it means that the stock price has turned stronger; RSI fell from above 50 to below the 50 boundary, indicating that the stock price weakened. However, the actual situation often makes investors confused. It is quite common that the stock price turns from strong to weak and then does not fall, and from weak to strong and then does not rise. This is because under normal circumstances, RSI will take the lead in finishing the consolidation when the direction of the market or individual stocks is unclear, and it will become stronger or weaker. If we want to overcome this shortcoming in practical application, we can set the RSI parameter smaller when the price changes greatly and frequently. When the price changes slightly and the fluctuation is not frequent, it is enough to set the RSI parameter larger.
Specific application of RSI
On RSI index
(1) basic settings. The parameter is set to 14, and the time period is verified by monthly, weekly and daily lines, with weekly and daily lines as the main ones. The default interval of RSI can be set to 25-90 in bull market and 15-70 in bear market, which makes the graph larger and easier to observe. (2) Operation interval. RSI does not run between 0- 100, but between 20-80. Different markets and different stocks have different resistance ranges and head ranges, which need to be adjusted and determined according to historical trends. In a bear market, RSI usually oscillates in the bottom region of 20-30 and the head region of 55-65. In a bull market, RSI usually oscillates in the bottom region of 40-50 and the head region of 80-90. (3) Bull-bear reversal. RSI breaks up to 40, indicating that bears turn to cattle, and breaks down to 65, indicating that cattle turn to bears. 1. When the bear turns to the bull, RSI encounters resistance in the head area of the bear market of 55-65, and has support in the bottom area of the bull market of 40-50, and will not drop to a new low, signaling a trend reversal. When it breaks through 65, it is confirmed that the trend is reversed and it enters the bull market. (Usually, when RSI breaks through 65 on the daily or weekly line, the stock price has risen a lot, and the best buying opportunity has been missed. Therefore, the buying time should be adjusted back to 40, combined with the deviation of RSI trend line, golden section line, K line, trend line, golden section line, Baota line and indicators, comprehensive judgment is made, and the adjustment is in place, and it is about to attack. ) 2. When a bull turns into a bear, RSI encounters support rising in the bottom area of bull market 40-50, and cannot reach a new high when resistance falling in the head area of bear market 55-65, signaling that the trend will turn into a bear. When it broke through 40, the trend reversal was confirmed and entered a bear market. (Usually on the daily or weekly line, when RSI breaks through 40, the stock price has fallen a lot, and the best selling opportunity has been missed. Therefore, the timing of selling should be placed when it falls to around 65 and then adjusted back. Combined with the trend line of RSI, the golden line, the moving average of K line, the trend line, the golden line, the pagoda line and the deviation of indicators, the head is about to fall. )
Application rules of RSI index
Application principle: 1. When the short-term RSI value of white is below 20 and the long-term RSI value of yellow crosses from bottom to top, it is a buy signal. 2. The short-term RSI value of white is above 80, and the long-term RSI value of yellow is the selling signal when it crosses from top to bottom. 3. The short-term RSI value exceeds 50 from top to bottom, indicating that the stock price is weak. 4. The short-term RSI value exceeds 50 from bottom to top, indicating that the stock price has turned stronger. 5. When the RSI value is higher than 80 and enters the overbought area, the stock price may form a short-term retracement at any time. 6. When the RSI value is lower than 20 and enters the oversold area, the stock price may form a short-term rebound at any time. 7. The stock price is getting higher and higher, while the RSI is getting lower and lower. Form a top deviation and the market can be reversed. Judging by RSI, the bottom figure is not obvious. 8. Connect two consecutive low points A and B of RSI into a straight line. When RSI falls below this line, it is a sell signal. 9. Connect two consecutive peaks C and D of RSI into a straight line. When RS I breaks this line, it is a buy signal. 10. In order to confirm whether RSI enters the overbought area or crosses the 50-line, long-term RSI should be used as much as possible to reduce the occurrence of online fraud. Short-term RSI is lower than 50, but long-term RSI is not, indicating that its upward trend has not changed. Short-term RSI below 50 is a "cheating line", which is confirmed by the wave after wave of stock price rise in the later period. 1 1. During the period of stock price consolidation, we should abandon the use of RSI indicators and observe whether ADX in DMI indicators is out of the quagmire. 12. In the strong ups and downs, if VR and ROC indicators show that the stock price is strong, give up using RSI indicators.
Judging the top with RSI index
Relative strength index (RSI) is one of the technical indicators. According to the strength index theory, any market price fluctuation is between 0- 100. According to the normal analysis, it is considered normal that the RSI value changes between 30 and 70. 80-90 thinks that the market is overbought, and the market price naturally faces downward adjustment. At 10-20, it is considered that the market has oversold, so the market price naturally faces stabilization and recovery. However, investors may find that sometimes the RSI is above 80 and the stock price is still rising, so it is not reliable to judge the top only by whether the stock price is overbought or not. So we should look for other laws to judge. Generally speaking, technical indicators tend to deviate from the top, and RSI indicators are no exception. The top deviation of RSI indicator means that the stock price hit a new high in the upward trend, and then the RSI indicator also hit a new high above 80, and then the stock price fell back to a certain extent, and RSI was also adjusted with the downward trend of the stock price. However, if the stock price rises again and exceeds the previous high point, the RSI will continue to rise with the stock price and will not exceed the previous high point, resulting in the top deviation of RSI. After the top deviation of RSI, it is more likely that the stock price will peak. The reason why RSI's top deviation is a sign that the stock price peaks is mainly because when the dealer pulls up the shipment, in order to make a quick shipment, his pull-up action is bound to be rapid and violent, and the shipment action will last for a long time and space. This feature determines that the dealer has repeatedly raised the stock price. However, because the RSI index mainly reflects the strength of the market, this trend of no longer being strong will undoubtedly lead to the decline of RSI. Therefore, once the dealer's shipping trend appears, RSI usually falls back to a large extent, thus forming a top deviation trend. This phenomenon is also likely to appear in indicators such as KDJ, and the phenomenon that the volume deviates from the stock price is also one of the signs that the stock price peaks. As the price rises, the trading volume tends to decrease, indicating that the market trading activity is gradually weakening, and then the stock price is likely to face a downward trend. After finding the deviation trend at the top of the indicator, investors should make a comprehensive judgment based on the market atmosphere and disk situation at that time. If the market is still in a relatively bullish stage, it is more likely that the stock price will continue to rise, but the magnitude and intensity will be significantly weaker than in the previous period. This is mainly because this rise is an upward trend stimulated by market sentiment, rather than a substantial promotion of trading volume, so the rise cannot last long.