CCL indicator is overbought and oversold indicator. The so-called overbought and oversold index, as the name implies, means that the ability of the buyer has been exceeded, and the number of people buying stocks has exceeded a certain proportion. Then, at this time, the stock should be sold in reverse. "Oversold" means that the seller oversold the stock. When the number of people selling stocks exceeds a certain percentage, they should buy stocks instead. This is a normal market. However, if the market is extremely strong, the overbought and oversold indicators will suddenly lose their direction, the market will continue to move forward, and the masses seem to lose control. CCL index provides different views on this disorderly behavior of original price. This will help investors to better judge the market, especially those abnormal prices that have soared and plummeted in the short term.

Second, the operating range of copper clad laminate indicators

CCL index is a special index to measure whether the stock price has exceeded the normal distribution range, and it is an overbought and oversold index, which fluctuates between positive infinity and negative infinity. But it doesn't need to be centered on 0, which is different from the index that fluctuates between positive infinity and negative infinity. CCL mainly measures the variability outside the normal price range, and also applies to futures commodity and stock prices.

Among the commonly used technical analysis indicators, CCL (homeopathic indicator) is the most peculiar one. The CCL index is not limited by the operating region and varies between positive infinity and negative infinity. However, unlike all other indexes without operating area, it has a relative technical reference area:+100 and-100. According to the index analysis, the operating range of CCL index can also be divided into three categories: overbought area above+100, oversold area below-100, and shock area between+100 and-100. However, the technical meaning of CCL index running in these three regions is different from the definition of overbought and oversold of other technical indexes. First of all, in the range of+100 to-100, this index is basically meaningless. It cannot provide many clear suggestions for the operation of the market and individual stocks, so it is generally invalid. This also reflects the characteristics of this indicator-CCL indicator is specially designed for extreme situations, that is to say, under normal market conditions, the role of CCL indicator is not obvious. When CCL scans the abnormal fluctuation of stock price, it is necessary to make a prompt decision, even if the loss is settled immediately.

Third, the practical application of copper clad laminate index

The practical application of CCL index mainly focuses on the judgment of CCL index interval, the deviation of CCL index, the trend of CCL curve and the shape of CCL curve.

(A) the determination of copper clad laminate index range

1. When the CCL indicator breaks through the+100 line from bottom to top and enters the abnormal range, it indicates that the stock price is out of the normal state and enters the abnormal fluctuation stage, and short-term and medium-term stocks should be bought in time. If there is a large volume, the buy signal will be more reliable;

2. When the CCL indicator breaks through the-100 line from top to bottom and enters another abnormal range, it indicates that the consolidation stage of the stock price has ended and will enter a long bottom-seeking process, and investors will mainly wait and see with money;

3. When the CCL indicator breaks through the+100 line from top to bottom and re-enters the normal range, it indicates that the rising stage of the stock price may end and will enter a relatively long consolidation stage, and investors should sell stocks on rallies in time;

4. When the CCL indicator breaks through the-100 line from bottom to top and re-enters the normal range, it indicates that the bottoming stage of the stock price may end, and some will enter the consolidation stage, so investors can buy stocks on dips.

5. When the CCL indicator runs in the normal range from+100 line to-100 line, investors can use KD, RSI and other overbought and oversold indicators to judge.

Deviation from CCL index

The deviation of CCL indicator means that the trend of CCL indicator curve is just the opposite to that of stock price K-line chart. The deviation of CCL index can be divided into top deviation and bottom deviation.

When the CCL curve is at a high level far from the+100 line, but after hitting a recent high point, one peak of the CCL curve tends to be lower than the other, and the stock price on the K-line chart hits a new high, forming a trend that one peak is higher than the other, which is the top deviation. Top deviation is generally a signal that the stock price is about to reverse at a high level, indicating that the stock price is about to fall in the short term, which is a selling signal. In the actual trend, the top deviation of CCL indicator means that the stock price hit a high point first in the process of pulling up, and CCL indicator also hit a new high above the+100 line. After that, the stock price adjusted to a certain extent, and the CCL curve also adjusted with the downward trend of the stock price. However, if the stock price goes up again and exceeds the previous high point to hit a new high, and the CCL curve goes up with the stock price rise but begins to fall back without exceeding the previous high point, this forms the top deviation of the CCL index. After the CCL indicator deviates from the top, the stock price is likely to peak and fall back, which is a strong selling signal.

(C) the trend of copper clad laminate curve

1. When the CCL curve breaks through the+100 line and enters the abnormal range, it indicates that the stock price begins to enter a strong state, and investors should buy the stock in time;

2. When the CCL curve breaks through the+100 line and enters the abnormal range, as long as the CCL curve keeps running upwards, it indicates that the stock price is still strong and investors can hold shares all the way.

3. When the CCL curve is in the abnormal range above the+100 line, and it starts to turn down far away from the+100 line, it shows that the strong state of the stock price will be difficult to maintain, which is a strong turning point signal of the stock price. If the short-term increase in the previous period is too high, it can be confirmed. At this point, investors should sell stocks on rallies in time;

4. When the CCL curve is in the abnormal range above the+100 line and falls away from the+100 line, it shows that the strong state of the stock price has ended, and investors should mainly sell stocks on rallies;

5. When the CCL curve breaks through the-100 line and enters another abnormal range, it shows that the weak state of the stock price has been formed, and investors should wait and see mainly by holding money;

6. When the CCL curve breaks through the-100 line and enters another abnormal interval, as long as the CCL curve runs all the way down, it indicates that the stock price is still weak and investors can wait and see all the way;

7. When the CCL curve breaks through the-100 line and enters another abnormal range, if the CCL curve runs in the oversold area for a long time and starts to turn around, it means that the staged bottom of the stock price has been preliminarily proved, and investors can open positions in an appropriate amount. The longer the CCL curve runs in the oversold area, the more you can confirm the bottom of the stage.

(4) The shape of copper clad laminate curve

1. When the CCL curve is far away from the high position above the+100 line, if the trend of the CCL curve forms a top inversion pattern such as M-head or triple-top, it may indicate that the stock price will turn from strong to weak, and the stock price may plummet, so the stock should be sold in time. If the curve of stock price also presents the same shape, it can be confirmed that its decline can be judged by the shape theory of M head or triple top;

2. When the CCL curve is far away from the low position below the-100 line, if the trend of CCL curve has a bottom inversion pattern such as W bottom or triple bottom bottom, it may indicate that the stock price will turn from weak to strong, and the stock price will rebound upward soon, so it can absorb a small amount of stocks on dips. If the stock price curve also appears in the same form, it can be confirmed that its increase can be judged by W bottom or triple bottom's morphological theory;

3. The accuracy of M head and triple head in 3.CCL curve is greater than that of W bottom and triple bottom.

In a word, CCL mainly works in overbought and oversold areas. But in different market trends, these two functions are different. In bull market, the most valuable application of CCL is to judge the bottom inflection point of short-term callback, and in bear market, the most valuable application of CCL is to judge the apex of short-term rebound. This is not an inherent feature of bear market and bull market, but related to the characteristics of copper clad laminate itself.

The defect of CCL index is that it plays a big role in breaking through the market, but not in moderate market.