Formula algorithm
What is the difference between the short-term moving average and the long-term moving average of DIF line?
DEA line (difference? Index? Average) m daily index of smma on dif line?
The difference between MACD line, dif line and DEA line, color bar line?
Parameters: SHORT (short), LONG (long), m days, generally12,26,9?
The formula is as follows:
Weighted average index (DI)= (the highest index of the day+the closing index of the day +2 times the lowest index)?
Twelve-day smoothing coefficient (s12) = 2/(12+1) = 0.1538?
On the 26th day, the smoothing coefficient (L26) = 2/(26+1) = 0.0745438+0?
12 daily index average (12 EMA)=S 12× closing index of the day? +? 11(12+1) × yesterday's 12 EMA?
Average value of 26th index (26th EMA)=L26× closing index of the day? +? 25/(26+ 1)× yesterday's 26-day moving average?
EMA (exponential? Moving? Average), that is, exponential average index. Also known as EXPMA indicator, it is also a trend indicator, and the exponential average index is a moving average with decreasing weighted index. The weight of each value decreases exponentially with time, and newer data is heavier, but older data is also given a certain weight. ?
Diffraction ratio (DIF)= 12 EMA-26 EMA?
9-day DIF moving average (DEA)= DIF×0.2 of the day? +Yesterday's DEA×0.8?
There is also an indicator on the analysis software called BAR:?
MACD:BAR=2×(DIF-DEA)
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Application principle
In the existing technical analysis software, the commonly used parameters of MACD are fast smma 12 and slow smma 26. In addition, MACD has an auxiliary indicator bar. In most futures technical analysis software, columnar lines are colored, green below axis 0 and red above axis 0. The former represents weakness, while the latter represents strength. ?
Let's talk about the basic principles that should be followed when using MACD indicators in the stock market:
1. When the DIF and DEA are above the 0 axis, it is a bull market, and when the DIF line crosses the DEA line from bottom to top, it is a buy signal. When the DIF line crosses the DEA line from top to bottom, if the two lines are still running above the 0 axis, it can only be regarded as a short-term decline, and the trend inflection point cannot be determined. Whether to sell or not at this time needs to be judged by combining other indicators. ?
2. When the DIF and DEA are below the 0-axis, it is a short market. When the DIF line crosses the DEA line from top to bottom, it is a sell signal. When the DIF line crosses the DEA line from bottom to top, if the two lines are still running below the 0-axis, it can only be regarded as a short-term rebound, but the inflection point of the trend cannot be determined. At this time, whether to buy or not needs to be judged by combining other indicators. ?
3. Contraction and enlargement of columnar lines. Generally speaking, the continuous contraction of columnar lines indicates that the strength of trend operation is gradually weakening. When the color of the column line changes, the trend determines the turning point. However, when using some short-term MACD indicators, this view cannot be fully established. ?
2. Form and deviation. MACD indicators also emphasize morphology and deviation. When the DIF line and MACD line of MACD indicators form a high bearish pattern, such as head and shoulders, double heads, etc. We should be vigilant; When the morphological MACD indicator DIF line and MACD line form a low bullish pattern, you should consider buying. When judging the shape, DIF line is the main one and MACD line is the auxiliary one. When the price continues to rise and the MACD indicator goes out of wave after wave, it means that there is a top deviation, indicating that the price may turn around in the near future. What about MACD when the price continues to decrease? When the index goes higher and higher, it means that the bottom deviation appears, which indicates that the price is about to end the decline and turn to rise. ?
5. Cowhide market indicators will be distorted. When the price does not run from top to bottom or from bottom to top, but keeps running horizontally, we call it cowhide market. At this time, a false signal will be generated in the MACD indicator, and the intersection of the DIF line and the MACD line will be very frequent. At the same time, column lines will appear frequently, and the color will often change from green to red or from red to green. At this time, MACD? The index is in a distorted state, and its use value is correspondingly reduced. ?
The curve shape of DIF is used for analysis, mainly using the deviation principle of indicators. Specifically: if the trend of DIF deviates from the trend of stock price, it is time to take concrete action. However, the accuracy of guiding the actual operation according to the above principles is not satisfactory. After practice, exploration and summary, the accuracy is greatly improved by comprehensively using 5-day, 10 moving average, 5-day, 10 moving average and MACD. ?