In the Qianlong system, DMA consists of two lines, one is solid DMA, and the other is dashed AMA derived from DMA. Investors can use the changes of these two lines to decide trading strategies.
First, buy and sell signals: DMA strongly regards AMA as a buy signal. As a selling signal, DMA strongly penetrated AMA.
Second, the trend signal: If DMA keeps rising, it should hold positions; On the contrary, when DMA keeps a downward trend, you should wait and see with money.
Third, the departure signal: when the stock price hits a new high, DMA can't hit a new high at the same time, but gradually goes down, which belongs to "top departure". Once DMA is found to break through AMA again, it will cause the stock price to plummet or even plummet; Similarly, when the stock price hit a new low, DMA did not hit a new low, but gradually rose, which is a "bottom deviation." Once DMA is found to be wearing AMA again, the stock price will soar. Generally speaking, after this deviation, there will be a big upward trend or a big downward trend. For example,1June 25th, 999, the DMA of Shanghai Stock Exchange is-103, and the lowest value of Shanghai Stock Exchange is 1467. However, on February 29th, 13465438, the Shanghai Stock Exchange was lower than 1, but the DMA was raised to -69, and the bottom deviation was extremely obvious. For another example, on August 25th, 2000, the Shanghai Composite Index peaked at 2 125 and the DMA was 122. But at the beginning of 2006, 5438+0, 1, the Shanghai Composite Index saw 2 1 twice, reaching a new high, but the DMA was only 35, which was extremely serious. In fact, on June 65438+1October 1 1 day, the market began to fall back and continued to plummet. As can be seen from the above two examples, once it deviates from the signal, its reliability is extremely high. Investors should attach great importance to it and be prepared to bargain-hunting or flee at any time. It is particularly emphasized here that the deviation signal between DMA and stock index is more obvious than that of other technical indicators. So its reference significance is even greater.
4. If any index is effective, it is inseparable from technical parameters that can reflect market changes. Appropriate technical parameters are undoubtedly decisive for the accuracy and objectivity of technical indicators. So try to find this technical parameter. Among DMA technical parameters, at present, the short-term DMA parameter of Qianlong system is 10 day, and the long-term DMA parameter is 50 days. Through observation, the author found that if the short-term DMA parameter is changed to 7 days and the long-term DMA parameter is changed to 42 days, its technical reference value is greater and more effective. Readers may wish to examine it carefully.