First, the value and position of DIF and MACD line
1. When both DIF and MACD are greater than 0 (that is, graphically above the zero line) and move upward, it generally indicates that the oil price is in a bull market and you can buy or hold positions;
2. When both DIF and MACD are less than 0 (that is, graphically below the zero line) and move down, it generally means that oil prices are in a short market and can be sold or wait and see.
3. When both DIF and MACD are greater than 0 (that is, graphically above the zero line) but both move downward, it generally means that the crude oil market is in a low tide stage, and the oil price will fall, so it can be sold and waited;
4. When both DIF and MACD are less than 0 (that is, graphically below the zero line) but move upward, it generally means that the market is about to start, oil prices will rise, and you can buy or hold positions and wait for the rise.
Second, the intersection of DIF and MACD.
1. When both DIF and MACD are above the zero line, DIF breaks through MACD upward, indicating that crude oil is in a strong position and oil prices will rise again, so it is possible to overweight buying or holding positions, which is a form of MACD indicator "golden cross".
2. When both DIF and MACD are below the zero line, DIF breaks through MACD upward, indicating that the oil market is about to strengthen, and the oil price decline has stopped falling upward, so you can start buying or holding positions. This is another form of MACD indicator "golden cross".
3. When both DIF and MACD are above the zero line, but DIF breaks through MACD downward, it indicates that the oil market will soon turn from strong to weak, and the oil price will plummet. At this time, most positions should be sold rather than bought, which is a form of "death cross" of MACD indicator.
4. When both DIF and MACD are below the zero line, DIF breaks through MACD downward, indicating that the oil market will once again enter an extremely weak market, and the oil price will fall, so you can sell it or wait and see. This is another form of MACD indicator "death cross".
Third, the histogram analysis of MACD indicators
In crude oil online chart, the histogram is usually drawn by subtracting DEA (MACD, DEM) value from DIF value, which is represented by red column and green column, with red column representing positive value and green column representing negative value. Red and green columns are intuitive and practical to analyze the market.
1. When the red column continues to enlarge, it indicates that the oil market is in a bull market and oil prices will continue to rise. At this time, you should hold a position until the red column can no longer be enlarged, and then consider selling it.
2. When the green column continues to enlarge, it shows that the oil market is in a bear market and oil prices will continue to fall. At this time, you should wait and see or sell with money, and only consider buying in small quantities until the green column begins to shrink.
3. When the red column begins to shrink, it indicates that the bull market in the oil market is coming to an end (or will enter an adjustment period) and the oil price will drop sharply. At this time, most positions should be sold rather than bought.
4. When the green column begins to shrink, it indicates that the plunge in the oil market is coming to an end and the oil price will stop falling upward (or enter consolidation). At this time, a small number of long-term strategic positions can be opened instead of being sold easily.
5. When the red column begins to disappear and the green column begins to release, it is one of the signals that the oil market turns to the market, which indicates that the rising market (or high consolidation market) of the oil market is coming to an end and the oil price will begin to accelerate its decline. At this time, it is necessary to start selling most positions instead of buying.
6. When the green column begins to disappear and the red column begins to release, it is also one of the signals that the oil market turns to the market, indicating that the decline (or low consolidation) of the oil market has ended and the oil price will begin to accelerate. At this time, it is necessary to start overweight buying or rising positions.
How to use the daily line in the K-line chart?
In K-line analysis, daily K-line is the most important. Don't look at the weekly K line and the monthly K line. Because the weekly K-line is the trend of five trading days in a week, it is mechanically drawn as a line and named as the weekly K-line. Only statistical significance, no scientific basis at all. Indifferent grouping every five days is the essence of the weekly line.
This rigid grouping often splits the internal connection of the daily K-line. For example, the main force began to rise sharply on Friday, and rose again on Monday and Tuesday of the next trading day. Friday, Monday and Tuesday were originally a continuous rising process, but unfortunately they were separated by the division of weekly lines. Friday's surge and Monday and Tuesday's surge can only belong to two weekly K lines respectively. This is especially true for the monthly K-line.
The essence of K-line analysis is to study the change of supply and demand through K-line form. It mainly analyzes the main body of supply and demand. Don't be bound by this K-line form, its soul is the relationship between supply and demand. If we can know the change of supply and demand, it is ok to skip the K-line. It is most important to see through the traps and intrigues in the market. K-line analysis is for this purpose.
People will make many mistakes in online analysis, which is mainly caused by people blindly following the trend of books and authority.
Key points of K-line analysis: K-line analysis should be fully prepared. This is the habit of professional masters. Nowadays, many people analyze the disk and make a decision in a few hours or even minutes: buy or sell. Even short-term hype should be analyzed based on the midline. It is necessary to study and observe the quantity for a few more days. If you take operation as your profession, you must have this habit. Many masters are like this. The observation time is quite long.