Setting method and formula of #ene index
Calculation process of 1.ene index
The calculation of ene index involves three parameters: ene line, upper rail and lower rail. The ene line is the moving average, and the upper rail and the lower rail are the price ranges calculated based on the ene line.
The calculation formula of ene line is as follows:
Ene line = moving average (closing, n)
Where close is the closing price and n is the period of the moving average. The ene line can be calculated by the moving average of different periods. The common periods are 10 days, 20 days and 50 days.
The calculation formula of upper rail is as follows:
Upper track =ene line +k* moving average amplitude (closing, m)
The calculation formula of the lower rail is as follows:
Lower rail =ene line -k* moving average amplitude (closing, m)
Where k is a multiple of the standard deviation and m is the period of the moving average amplitude. The standard deviation can be used to measure the price fluctuation, and the moving average amplitude is the moving average of the fluctuation range.
2.2. Application scenarios of ENE indicators
The olefin index can be used to judge the overbought and oversold situation in the market. When the price is near the upper rail, it means that the market is overbought, and there may be opportunities for price correction or decline. When the price is near the lower rail, it means that the market is oversold and the price may rebound or rise.
The olefin index can also be used to judge the strength of market trends. When the price is above the ene line and the upper rail is inclined upward, it means that the market is rising and traders can consider going long. When the price is lower than the ene line and the lower rail inclines downward, it indicates that the market is in a downward trend and traders can consider shorting.
3.3. Advantages of ENE indicator
One advantage of ene index is that it can reflect the changes of market trends in time. Because ene index combines moving average and amplitude index, it can accurately judge the price trend. At the same time, the calculation of olefin index is relatively simple and easy to understand and apply.
The olefin index can also be used to determine the stop loss point and profit point of the transaction. Traders can set a stop loss point above the upper rail to protect the principal from excessive losses. The profit-taking point can be set below the lower rail to ensure the maximization of profit opportunities.
4.4. Matters needing attention of olefin index
When using olefin indicators, traders need to pay attention to the following points:
The olefin indicator is an auxiliary tool and cannot be used alone. It needs to be combined with other technical analysis indicators and comprehensive analysis of trading strategies.
The parameter setting of olefin index needs to be adjusted according to the specific market situation and trading varieties. Different markets and time periods may apply different parameters.
The Ene index cannot accurately predict the market trend with 100%, and traders need to make judgments and decisions based on real-time market conditions and information.
5.
Ene index is a useful technical analysis index, which can help traders identify the overbought and oversold situation of the market and the strength of the market trend. By setting ene line, upper rail and lower rail, traders can accurately judge the price trend and formulate corresponding trading strategies. Ene index is not omnipotent, and traders need to make comprehensive analysis and decision by combining other indicators and strategies. In practical application, traders need to adjust parameters according to specific market conditions and trading varieties, and pay attention to timely control risks and losses. Through continuous study and practice, traders can make better use of ene indicators for technical analysis and improve the accuracy and profitability of trading.