( 1)W & amp； R takes 0-20 as the top area and 80- 100 as the bottom area.
(2)W & amp； R curve should not move immediately when it enters the overbought area of antenna above 20, and should not be sold before it falls below 20.
(3)W & amp； Don't act immediately when the R curve enters the oversold area of the ground wire below 80, and don't buy it before the W%R curve turns back and breaks through 80. This can effectively overcome the inaccurate signals such as overbought, overbought and oversold of W%R indicators.
(4) If W &；; R hits the top four times, and the fourth touch is a very good selling point.
(5) If W&; R bottomed out four times, and the fourth bottoming out is a very good buying point.
Of course, the "four times" mentioned here can't be copied mechanically, and everything should be decided according to the situation at that time. In addition, we can use W &；; R indicator and RSI indicator are used together to improve the accuracy of the signal. W & r1The system is set to 10 days; The W & ampR2 system is set to 6 days;
Relatively speaking, W &；; The change rate of R 1 is not as high as that of w&; R2 is fast, for example, in case of sudden pull or sudden drop, w &；; R2 will change rapidly, while W &；; R 1 is relatively passive, with little change, while w&R2 is larger. If you do short-term, refer to W &；; The change of R2; Short and medium lines, refer to W &；; R 1 change; If you do the center line, you need to modify W &；; The exponential parameter of R 1 is generally set to 14 days.
The initial W& of William indicator is William overbought and oversold indicator, abbreviated as W & ampr or&; r .
W & ampr uses the swing principle to judge whether the stock market is overbought or oversold, which can measure the high or low point of the stock market cycle in the same period and put forward effective trading signals. The short-term William indicator can be set to 9 days, and the medium-term William indicator is 14 days or 20 days. 1. When w &；; When the R value is above 80 and the stock market is oversold, it is the time to buy; On the other hand, when W&; When the R value is lower than 20 and the stock market is overbought, it is the time to sell.
2. When W &；; R climbing up from the oversold area can only show that the market will stop falling and stabilize. If W &；; When R breaks through the 50-line, it means that the market has risen and strengthened, and it can chase up and buy. On the contrary, when W &；; When R falls from the overbought area and falls below the 50-line, the market decline becomes stronger and it can be chased down.
3. When the stock price falls deeply, W &；; R value falls between 80- 100, and when it rebounds, it falls below the area between 80- 100 at a time, and when it falls below 20-80, it is the buying opportunity. On the other hand, when the stock price is high, W &；; R is between 0-20. When it falls below the 0-20 area and below 20-80 at one time, it is the selling opportunity.
The stock 200 1 fell with the broader market, during which the William index bottomed out many times, but it could not be used as a buying signal. In the middle of 20 10 and 12, the William index of the stock bottomed out again, the second time in the late period of 12, the third time in the middle period of 20 1 1 and the fourth time in the late period of 1. Then the buying signal is obvious. . In the analysis cycle, if the stock price innovation is low and enters the lower risk area, the stock price may rebound at any time. Low passivation can be regarded as entering the oversold risk area and selling cautiously.
W & ampr William indicator is mainly used to explain overbought and oversold states. Contrary to the KDJ index, W&; R William indicator curve more than 80% means oversold, while less than 20% means overbought.
W & ampr can mainly assist RSI. If it is different, it should be considered separately.
W & ampr said that when overbought or oversold, you should immediately seek MACD signal support. When w &；; R indicates that when overbought, it is used as an early warning to see whether the MACD produces the selling signal that DIF crosses the MACD downwards. This rule takes the signal of MACD as an opportunity to start selling. On the other hand, W &；; The same applies to r entering the oversold area. Because WMS% R mainly studies multi-lateral force, which is just the opposite of other similar oscillation indexes, therefore,
WMS%R80 and above are overbought areas, and below 20 are overbought areas.
Only when it exceeds the overbought line (WMS% R=20) will the reference sell signal be issued.
Similarly, when it is below the oversold line (WMS% R=80), a reference buy signal will be issued.
These two indicators are one of the most important indicators in the securities market, which originated from the futures market and received wide attention. 20 1 1 May, these two indicators were widely used in China stock market.
Summing up the application of William index calculation formula, like strength index and randomness, the calculated index value fluctuates between 0- 100: (1)%R line is oversold when it reaches 80; When the %R line reaches 20, the market is overbought and the trend may peak soon. The horizontal line of 20 is called the selling line.
(2) When %R climbs up from the oversold area, it means that the market trend may turn, and the market may not turn immediately. Only by confirming that the %R line has obviously turned, falling below the selling line or breaking through the buying line is the correct trading signal.
1. From the calculation formula of William index, it is very important to choose the numerical value of base period n. The establishment of n value represents the choice of research period. The smaller the value of n, the faster the fluctuation frequency of William index. The higher the sensitivity to price changes, the easier it is for operating investors to fall into the wrong circle of frequent operations, and the influence of accidental factors will also increase investors' judgment errors on the existing market; The greater the value of n, the slower the fluctuation frequency of William index, the lower the sensitivity of price change, and the smaller the influence of accidental factors on price trend. Based on the long-term tracking of William indicator for five years and the influence of time window on price trend, the author thinks that William indicator can be selected according to short, medium and long parameters. The short-term n value is 10, the medium-term 20 and the long-term 89 represent short, medium and long swing trends respectively.
2. From the calculation formula of William indicator, when the closing price of the day is equal to the lowest price of N days in the selected base period, William indicator reaches 100, that is, the extreme value of "oversold selling point". Note that this is not the time to buy and sell, which only means that it is time to buy and sell. At this time, we should also consider swing inertia. In the sharp decline, the market closing price can hit a new low continuously, and only the value of William indicator changes is the best "oversold". In the selected range of base period n, when the closing price of the day is equal to the highest price in n days, the William index reaches 0, that is, the "overbought point" extreme value, depending on the change of the next point. The daily line looks at the next day, the weekly line looks at the next week, and so on. The above points not only include the common sense of "no top to rise, no bottom to fall", but also include the thinking mode of "buy on dips and sell on rallies".
3. The value of William indicator is between 0- 100, usually 50 is the separated center line, 80- 100 is the oversold line, and 20-0 is the overbought line. Judging from the short, medium and long William indicator lines, when the three indicator lines merge to reach or approach 100, that is, the "oversold" extreme value or the William indicator reaches or approaches 0, that is, the numerical change of the next William indicator is the most important trading opportunity for investors.
For example, on the weekly chart of the Shanghai Stock Exchange Index, when the short-term 10 week, the medium-term 20 week and the long-term 89 week of the William Index merge to be close to 100, the next week of its numerical oscillation obviously corresponds to the market bottom in 2002 and 2003, and then the market starts to rebound sharply, only once a year.