MACD is called the exponential smoothing moving average of convergence and divergence, and the Chinese name of the KDJ indicator is the stochastic index.
MACD is called the exponential smoothing moving average of convergence and divergence. It is developed from the double moving average. It is the fast moving average minus the slow moving average. The meaning of MACD and the double moving average Basically the same, but easier to read. When MACD turns from negative to positive, it is a buy signal. When MACD turns from positive to negative, it is a sell signal. When MACD changes at a large angle, it means that the gap between the fast moving average and the slow moving average widens very quickly, which represents a change in the general market trend.
The stochastic indicator (the Chinese name of the KDJ indicator is the stochastic index) first originated in the futures market and was pioneered by George Lane. It uses the highest price, lowest price and closing price on the same day or in recent days. The amplitude of fluctuations reflects the strength of the price trend. The stochastic indicator has three lines on the chart, K ??line, D line and J line. The meaning of the stochastic indicator KD line: The KD line is called a stochastic indicator, K is a fast indicator, and D is a slow indicator. When the K line breaks through the D line upward, it indicates an upward trend and you can buy; when the K line breaks through downward, When the D line is on, you can sell. When the KD value rises above 90, it means it is high, and when it falls below 20, it means it is low. If it is too high, it may fall; if it is too low, it may rise.
K value = 2/3 × K value of the previous day + 1/3 × RSV of the current day D value = 2/3 × D value of the previous day + 1/3 × K value of the current day J value = 3 * K value of the current day - 2 *D value of the day