The deviation of MACD top management is:
After the stock price rises for a period of time, the top deviation of MACD means that the stock price is flat or high with the previous high stock price (generally speaking, it depends on the stock price trend). In the MACD indicator, DIFF is not synchronized with the price, but is low or flat (strictly speaking, it is only operable when it is greater than the numerical value). In cdl indicator, DIFF changes from red to green. The price depends on the trend, not necessarily on the highest price, the lowest price and the closing price, but on a general appearance. The difference below should be compared with the previous peak, so it should be accurate.
The usage is not to look at the price above, but only at the highest point of MACD price difference. As long as this new peak does not have the previous high point, it is considered a deviation. Generally, there is a decline of at least 15% downward.
What I want to explain here is that the MACD deviation mentioned in the textbook is the MACD ratio between the stock price and the MACD indicator, and what I am talking about here is the DIFF ratio between the stock price and the MACD indicator.
In the illustration, E40 is EXPMA40, E 10 is EXPMA 10, and 3MA is the 3-day moving average.
On the contrary, the bottom of MACD deviates. The stock price will hit a new low, and DIFF will not hit a new low (there should be a lowest point ahead). The day after this second low point is the bottom deviation point. It should be noted that this second low point is formed by the rise the next day, and the bottom deviation point is the reference point for the purchase.
The usage is not to look at the stock price above, but to look at DIFF. The day that caused this low point is the bottom deviation point.
Below: I can't see the end of the article clearly. Talk to the author.
Now look how accurate it is! Anyone who wants to enter the ticket, once he sees MACD, should not enter immediately, at least until it has a callback of 15% or more. The next day, when you have a ticket, you can pick it up at the lower position.
The above is the principle. Generally speaking, top deviation is more accurate. Seeing the escape is real. There is at least a drop of 15% below. The false escape is nothing more than making less money. The bottom deviation can only be used for reference. There is no guarantee that you will get a 5% profit if you buy it. If you buy it, you only have a stop loss.
Let's take another photo with the top off:
Let's take a look at the whole picture and deepen our understanding.
Someone asked: Why is point 27 1 1 in the whole picture the bottom deviation point? Why does point E deviate from point CD?
2, 7, 1 1, DIFF changes direction, and all diffs change from green to red, resulting in the position of the previous day and a low position. The low ratio caused by 2 is higher than 1, the low ratio caused by 7 is higher than 4, and the low ratio caused by 1 1 is higher than 9. So 2,7, 1 1 is the bottom deviation point.
1 1 was a bit reluctant, flat, and almost rose, but the stock price rose by more than 3%, and J rose that day. If you can't see clearly, you don't have to do it.
The new high position caused by E (the day before E) is lower than the previous high positions C and D, and E is the top deviation.
This is my scale. I can't see it anywhere else. It's not necessarily good for everyone to see for themselves.
Let's have a clearer top deviation diagram.
What parameters should MACD use?
The post of short-term speculators practicing escape from the top said that the standard parameter was 2612,9. This is also to simplify, to change with the same.
Some people think that it will be fine after 20, 6 and 5, so don't change it. Some people think that it is good to look at the tolerance line of MACD column in MACD after practice, so don't change it. In short, if you practice and get what you think is good, don't change it easily unless you encounter problems in practice, which was stated in the preface of the first post of The Speculator's Practice.
Because there is no MACD crossover, the response is faster. For short-term use, you can use 60-minute line, daily line and weekly line.
This article only talks about deviation, MACD is extensive and profound, and an article cannot be made clear.
This article is to introduce MACD deviation so that everyone can understand its spirit. The deviation is more accurate, and the mistake is nothing more than earning less. The bottom deviation is almost the same, and it is not easy to buy if it does not rise.
It is best not to do it when the stock price is below E40. If you want to do it, you should do it with large MACD fluctuation and obvious deviation at the bottom. At this time, you can't ask too much for the bottom deviation of buying. Stop loss at any time, don't do it if you can't see it clearly.