CDP, also known as the counter-trend trading system, is mainly used for intraday speculation in futures. Current stocks are traded on T+1, which is not very suitable.
CDP is a very distinctive indicator. It is usually a counter-trend system of selling high and buying low. However, when certain conditions are met, it is possible to trade with the trend. When trading volume is extremely low, waiting patiently is the best policy; when trading volume changes moderately, you may wish to design resistance prices and support levels based on CDP, and reduce costs by selling high and buying low. CDP, the "countertrend operating system", is a stock price limit set based on changes in the momentum field. Its calculation formula is:
CDP=(H+L+2C)/4
H: the highest price of the previous day; L: the lowest price of the previous day; C: the closing price of the previous day
AH (highest price) = CDP + (H-L)
NH (near high price) = CDP × 2—L
AL (lowest price) = CDP—(H—L)
NH (near low price) = CDP × 2—H< /p>
The significance of CDP is to estimate the next day’s point, which is an imaginary way of combat. The key to judgment is to look at the five CDP values ??(AH, NH, CDP, NL, AL) of the stock index (stock price). ). In this way, investors can avoid buying at the highest price and selling at the lowest price by referring to CDP.
How to judge whether the market center of gravity is on an upward or downward trend?
If CDP's AH rises sequentially, and NH also rises, the market has quietly moved upward; if CDP's NH continues to hit new lows, the market may face a downward break, and you should flexibly grasp the situation. The use of indicators can help you stay one step ahead of others and gain insight into market opportunities.
The operation method in the software evolved based on past historical data, and added variables according to the trend. However, we completely copied it based on the stock price model, and of course there are differences in the results.
< p>In fact, any indicator has its limitations and one-sidedness, and the only rule is to learn from others’ strengths and use them flexibly~