Excellent formula MSD
In the securities market, in order to defeat the market index, the main force must always have his "secret weapon (technical analysis tool)"; retail investors must choose among strong stocks For stocks on the market, you also want to know the relative positions of the stocks and indexes you are involved in in the near future. To this end, Mr. Cheng Feng, the securities master, introduced the indicators for comparing individual stocks with the broader market in his masterpiece "Stable Stocks Win" --- MSD.
Usage:
(1) The MSD of the index and individual stocks are at a low level below 20 at the same time, indicating that individual stocks have fallen simultaneously with the market. Usually, individual stocks do not fall in this way
< p>Deserves attention.(2)
-A: The index MSD is at a low level, and the individual stock MSD breaks away from the low area and breaks through 20, indicating that some dealers intervene first, and the degree of intervention depends on the rising position of the individual stock MSD.
-B: When MSD rises to around 50, it turns around and returns to the low area. This is a test by the banker.
-C: If MSD rises to the area above 80 and then turns down, it indicates that some dealers are going against the trend to accumulate funds, and the traces of big bull stocks have appeared. MSD returning to the low level below 20 is a godsend. Chance.
-D: If the MSD rises to the area above 80 and refuses to fall back, and the stock price goes against the trend and strengthens, whether it is the action of Lao Zhuang or the intervention of Xinzhuang, it is a sign that big bull investors are rising, and they should be bold Chasing the rise will not stop until you make money.
(3) When the index MSD leaves the low level and moves upward, it is a signal for the market to rebound, and when MSD enters a strong zone above 50, it is a signal for the market to reverse. Stocks that have made counter-trend moves before will become the vanguard of the market's rise, and usually become big bull stocks.
(4) The stocks whose MSD is greater than the index MSD belong to the leading sector of the market. The chasing signal is determined when the individual stock's MSD crosses the index MSD.
(5) MSD is above 50, whether it is an index or an individual stock, it is a strong consolidation. From a broader market perspective, sufficient confidence in holding shares can be maintained. From the perspective of individual stocks, it is a good opportunity for short-term accumulation.
(6) The stocks whose MSD of individual stocks adjust to the weak zone before the MSD of the market are stocks that have been shipped by market makers and whose stock prices will undergo mid-line adjustments.
Practical application and evaluation: I got Teacher Cheng Feng’s "Sure and Steady" in October last year and read it no less than 10 times. Between the lines, I can see the great farmer’s son’s passion. Simple feelings, hard-earned mantras on the keyboard with his fingertips, and simple expressions of profound classic securities techniques. The K-line form and trend line buying and selling points revealed by MSD (not stated explicitly in the book) have more connotations worthy of our thinking. The writing method of the indicator alone is an innovation of comparative indicators. In application, it is not only necessary to look at the golden cross, but more importantly, the shape of individual stock indicators during the golden cross (I hope this will not offend Mr. Cheng Feng), so as to improve the success rate of the golden cross. The stocks that the author uses to intervene are: 0564 (2001.01.15) 600127 (2001.01.16) 0658 (2001.02.06) 0065 (2001.03.01) 600038 (2001.02.23). These stocks are all discussed with Fishing and Hunting, CW intraday trading. Confirmation of the intervention point is not discussed here. The MSD indicator brings us new ideas for creating indicators, and it is a good medicine that this futures and stock trader offers to the vast number of injured retail investors.