W & William index

Created by tarry williams, it is a technical index that reflects the phenomenon of overbought and oversold in the market, predicts the high and low points in the cycle, and then puts forward an effective signal to analyze the short-term market trend and judge the strength boundary of the stock market.

Calculation method: hy = the highest price per day;

Ly = lowest price per day;

Q=HY- today's closing price;

r = HY-LY；

Therefore, William index WR=Q/R* 100.

Analysis of index content and use

AA:=(HHV (high, N)- close);

BB:=(HHV (high, N)-LLV (low, n));

W&: 100*AA/BB

The principle of buying and selling: when W&; R is higher than 80%, that is, oversold, and the market is about to bottom out. You should consider buying. W & ampr is lower than 20%, that is, overbought, and the market is about to peak, so we should consider selling. At w& time; After r enters the high position, it is generally necessary to turn back. If the stock price continues to fall at this time, it will lead to deviation, which is a signal to purchase goods. At w& time; After R enters the low position, it will generally reverse. If the stock price continues to rise at this time, there will be a deviation, which is a signal to sell. W & ampr touches the top (bottom) several times in a row, and the partial formation of double bottom or multiple bottom (top) is the signal of (entry) shipment.

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CCI indicator CCI indicator, also known as homeopathic indicator, is called commodity channel index in English, which was developed by American stock market analyst Donald? Founded by Donald R.Lambert in 1980s, it is a short-term and medium-term index to guide stock market investment.

First, the principle of CCI index

CCI indicator is an overbought and oversold indicator. The so-called overbought and oversold index, as the name implies, means that the ability of the buyer has been exceeded, and the number of people buying stocks has exceeded a certain proportion. Then, at this time, the stock should be sold in reverse. "Oversold" means that the seller oversold the stock. When the number of people selling stocks exceeds a certain percentage, they should buy stocks instead. This is a normal market. However, if the market is extremely strong, the overbought and oversold indicators will suddenly lose their direction, the market will continue to move forward, and the masses seem to lose control. CCI index provides different views on the disorderly behavior of the original price. This will help investors to better judge the market, especially those abnormal prices that have soared and plummeted in the short term.

Second, the operating range of CCI indicators

This indicator is a special indicator to measure whether the stock price has gone beyond the normal distribution. It belongs to a special overbought and oversold indicator and fluctuates between positive infinity and negative infinity, but it does not need to be centered on 0, which is different from the indicator that fluctuates between positive infinity and negative infinity. CCI mainly measures the variability outside the normal range of prices, and also applies to futures commodity and stock prices.

Among the commonly used technical analysis indicators, CCI (homeopathic indicator) is the most peculiar one. CCI index varies between positive infinity and negative infinity, and there is no limit of operating area, but it has a relative technical reference area:+100 and-100, which is different from all other indexes without operating area limit. According to the general idea of index analysis, the operating range of CCI index can also be divided into three categories: overbought area above+100, oversold area below-100, and shock area between+100 and-100. However, the technical significance of CCI index running in these three regions is related to the definitions of overbought and oversold of other technical indicators. First of all, in the range of+100 to-100, this index is basically meaningless. It cannot provide many clear suggestions for the operation of the market and individual stocks, so it is generally invalid. This also reflects the characteristics of this indicator-CCI indicator is specially designed for extreme situations, that is, under normal market conditions, CCI indicator will not work. When CCI scans the abnormal fluctuation of the stock price, it must make a decisive decision, the outcome is immediately known, and the gambling loss must be settled immediately.

Third, the practical application of CCI indicators

The practical application of CCI index mainly focuses on the judgment of CCI index interval, the deviation of CCI index, the trend of CCI curve and the shape of CCI curve.

(A) the determination of CCI index interval

1. When CCI indicator breaks through the+100 line from bottom to top and enters the abnormal range, it indicates that the stock price is out of normal and enters the abnormal fluctuation stage, and short-term and medium-term stocks should be bought in time. If there is a large trading volume, the buy signal is more reliable;

2. When CCI indicator breaks through the-100 line from top to bottom and enters another abnormal range, it indicates that the consolidation stage of stock price has ended and will enter a long bottom-seeking process, and investors should wait and see mainly by holding money;

3. When CCI index breaks through the line of+100 from top to bottom and re-enters the normal range, it indicates that the rising stage of stock price may end and it will enter a relatively long consolidation stage, and investors should sell stocks on rallies in time;

4. When the CCI indicator breaks through the-100 line from bottom to top and re-enters the normal range, it indicates that the bottoming stage of the stock price may end, and some will enter the consolidation stage, and investors can buy stocks on dips in small quantities;

5. When CCI indicator runs in the normal range from+100 line to-100 line, investors can use other overbought and oversold indicators such as KDJ and W% R to judge.

(b) Deviation from CCI index

The deviation of CCI index means that the trend of CCI index curve is just the opposite to that of K-line chart of stock price. The deviation of CCI index can be divided into top deviation and bottom deviation.

1. When the CCI curve is at a high position far away from the+100 line, but after hitting a recent high point, the CCI curve instead forms a trend that one peak is lower than another, and the stock price on the K-line chart hits a new high again, forming a trend that one peak is higher than another, which is the top deviation. Top deviation is generally a signal that the stock price is about to reverse at a high level, indicating that the stock price is about to fall in the short term, which is a selling signal. In the actual trend, the top deviation of CCI indicator means that the stock price hit a high point first in the process of pulling up, and CCI indicator also hit a new high above the+100 line. After that, the stock price adjusted to a certain extent, and the CCI curve also adjusted with the downward trend of the stock price. However, if the stock price goes up again and exceeds the previous high point to hit a new high, the CCI curve goes up with the stock price rise but begins to fall back without exceeding the previous high point, which forms the top deviation of CCI indicators. After the CCI indicator deviates from the top, it is more likely that the stock price will peak and fall back, which is a strong selling signal.

2. The bottom deviation of 2.CCI generally appears in the low-level area far from the-100 line. When the stock price falls all the way on the K-line chart, it forms a wave after wave trend, and CCI curve takes the lead to stop falling and stabilize at a low level, forming a trend that the bottom is higher than the bottom, which is the bottom deviation. Bottom deviation generally indicates that the stock price may rebound in the short term and is a short-term buying signal. Like the deviation of MACD, KDJ and other indicators, the accuracy of top deviation is higher than that of bottom deviation in CCI indicators. When the stock price is at a high level and CCI deviates from the+100 line, it can be considered that the stock price is about to reverse downward and investors can sell the stock in time; However, when the stock price is at a low level and CCI is far from the low level below the-100 line, it is usually necessary to confirm the bottom deviation many times, and investors can only make strategic positions or short-term investments.

(C) the trend of CCI curve

1. When the CCI curve breaks through the+100 line and enters the abnormal range, it indicates that the stock price begins to enter a strong state, and investors should buy stocks in time;

2. When the CCI curve breaks through the+100 line and enters the abnormal range, as long as the CCI curve keeps running upwards, it indicates that the stock price is still firm and investors can hold shares all the way.

3. When the CCI curve is in the abnormal range above the+100 line, and it starts to turn down away from the+100 line, it indicates that the strong state of the stock price will be difficult to maintain, which is a strong turning point signal of the stock price. If the short-term increase in the previous period is too high, it can be confirmed. At this point, investors should sell stocks on rallies in time;

4. When the CCI curve is in the abnormal range above the+100 line and falls away from the+100 line, it shows that the strong state of the stock price has ended, and investors should mainly sell stocks on rallies;

5. When CCI curve breaks through the-100 line and enters another abnormal interval, it shows that the weak state of stock price has been formed, and investors should wait and see mainly by holding money;

6. When the CCI curve breaks through the-100 line and enters another abnormal interval, as long as the CCI curve runs all the way down, it means that the stock price is still weak and investors can wait and see all the way;

7. When the CCI curve breaks through the-100 line and enters another abnormal interval, if the CCI curve runs in the oversold area for a long time and then starts to turn around, it means that the short-term bottom of the stock price has been initially found, and investors can open a small amount of positions. The longer the CCI curve runs in the oversold area, the more you can confirm the short-term bottom.

(D) the shape of CCI curve

1. When the CCI curve is far away from the high position above the+100 line, if the trend of CCI curve forms a top inversion form such as M prefix or triple top, it may indicate that the stock price will turn from strong to weak, and the stock price is about to plummet, so the stock should be sold in time. If the curve of stock price also presents the same shape, it can be confirmed that its decline can be judged by the shape theory of M head or triple top;

2. When the CCI curve is far away from the low position below the-100 line, if the CCI curve has a bottom inversion shape such as W bottom or triple bottom, it may indicate that the stock price will turn from weak to strong, and the stock price will rebound upward soon, so a small amount of stocks can be absorbed on dips. If the stock price curve also appears in the same form, it can be confirmed that its increase can be judged by W bottom or triple bottom's morphological theory;

3. The accuracy of M head and triple head in 3.CCI curve is greater than that of W bottom and triple bottom.