There are three lines in the chart * * *, namely K line, D line and J line. When calculating random indicators, the highest and lowest prices in the calculation period are considered, and the random amplitude in stock price fluctuation is considered. Therefore, people think that random indicators reflect the fluctuation of stock prices more truly, and their prompt function is more obvious.

The meaning of random index KD line: KD line is called random index, K is fast index and D is slow index. When the K-line breaks through the D-line, it means an upward trend and can be bought. When the K line breaks through the D line, it can be sold. When the KD value rises above 90, it means high, and when it falls below 20, it means low.

If it is too high, there is a possibility of falling, and if it is too low, there is a chance of rising.

Application rules of KDJ index

KDJ index is three curves, which are mainly considered from five aspects when applied: the absolute number of KD; The form of KD curve; KD index crossing; Deviation of KD index; The value of the j index.

First consider the value of KD. The range of KD is 0 ~ 100, which is divided into several areas: over 80 is overbought area, below 20 is overbought area, and the rest is wandering area.

According to this classification, if KD exceeds 80, we should consider selling, and if KD is below 20, we should consider buying. It should be noted that the above division is only a preliminary process of applying KD index, and it is just a signal. If you operate completely in this way, it is easy to lose money.

Second, consider from the shape of KD index curve. When the KD index forms a head-shoulder top shape and multiple tops (bottoms) at a higher or lower position, it is a signal to take action. Please note that these forms must appear in a higher or lower position. The higher or lower the position, the more reliable the conclusion.

Third, consider from the intersection of KD indicators. The relationship between K and D, like the relationship between stock price and MA, also has the problems of death crossover and gold crossover, but the application of crossover here is very complicated, and many other conditions are attached.

Take the bottom-up intersection of K and D as an example: K intersection D is a golden intersection and a buying signal. However, whether you should buy a gold fork depends on other conditions.

The first condition is that the position of the golden fork should be relatively low, especially in the oversold area. The lower the better.

The second condition is the number of times to intersect with d, sometimes in the low position, k and d have to intersect back and forth several times. The minimum crossing times is 2, and the more the better.

The third condition is the position of the intersection point relative to the low point of KD line, which is often referred to as the "right intersection point" principle. K only intersects D when D looks up, which is much more reliable than when D is still falling.

Fourth, consider from the deviation of KD index. If KD is high or low, if it deviates from the trend of stock price, it is a signal to take action.

Fifthly, if the value of J index exceeds 100 and is lower than 0, it belongs to the abnormal price area. More than 100 is overbought, less than 0 is oversold.

Practical application of MACD stock selection

In stock market investment, MACD indicator, as a technical analysis method, has been recognized by investors. However, few people know how to use MACD index to make the investment income reach the best level. As a tool of stock market investment analysis, technical analysis has two major functions. The first is to find investment opportunities in the stock market, and the second is to protect the investment income of the stock market from losses. In the stock market, MACD indicator is far more effective in protecting investors' interests than in finding investment opportunities. As a medium-and long-term analysis method, MACD indicator produces cross signals that lag behind short-term transactions. MACD indicator is a general trend indicator, which consists of five parts: long-term moving average MACD, short-term moving average DIF, red energy column (bulls), green energy column (bears) and 0 axis (long-short boundary). It uses the intersection of short-term moving average DIF and long-term moving average MACD as the signal. The cross signal generated by MACD indicator is slow, but it is effective as a corresponding trading strategy. The specific use method is as follows:

1 when DIF MACD MACD are above the 0 axis, it means that the general trend is in a bull market, and investors should take the shareholding as the main strategy. If DIF crosses MACD from bottom to top, it doesn't mean it is a buy signal. At this time, the market trend is already a short-term high point, and the strategy of selling high and sucking low should be adopted. Under normal circumstances, there will be a low callback on the second or third day after the cross signal is generated, and then you can buy again to achieve the purpose of sharing the cost. If DIF crosses MACD from top to bottom, it means that the rising market in this band has ended. Usually after the cross signal is generated, there will be a decent rebound, and the formation of the short-term top has been confirmed. At this point, investors can take the opportunity to close their positions. In the subsequent adjustment, stochastic index KDJ and intensity index KSI are used to wait for the opportunity to intervene to reduce the production cost. If DIF crosses MACD for the second time from bottom to top, it indicates that there will be a strong upward trend. After the cross signal is generated, investors should hold shares all the way until DIF crosses MACD from top to bottom again, and then clear all the stocks, so they can take their wallets home to rest. Due to the diversity of the stock market, MACD indicators often deviate from the K-line chart, which is often called bear deviation. Not only did the K-line chart hit the second or third high point in the near future, but the MACD indicator did not match the corresponding high point. Instead, it showed the opposite trend, and the peak value was gradually decreasing. The phenomenon of seed separation should arouse the vigilance of investors, because it indicates that the market will plummet in the future, and investors should adopt the strategy of clearing the warehouse and leaving the market to avoid being caught in the quilt and causing financial losses.

When the DIF and MACD are below the 0-axis, it shows that the current trend belongs to the short market, and investors should wait and see mainly by holding money. If DIF crosses MACD from top to bottom, there will be an adjustment low point. Under normal circumstances, this is followed by a wave of rebound, which is a good opportunity for investors to close their positions. In China stock market, there is no short-selling mechanism at present, so once the stock market enters the short-selling market, investors' best strategy is to leave the market and wait and see. Investors can increase the value of their funds when the stock depreciates. If DIF crosses MACD from bottom to top, it will produce a recent high point, and investors should decisively close their positions. The generation of such signals is generally rebound in nature. In the short market, every rebound should be regarded as the best time to ship. In particular, if DIF crosses MACD from top to bottom for the second time, it indicates that there will be a big decline in the future. After the cross signal is generated, investors should resolutely clear their positions. Usually there will be a decline in this period, which belongs to the C wave decline in wave theory and is the most lethal one. Only by avoiding the decline of C wave can we really make money in the stock market. After the C-wave decline in the short market, the MACD indicator occasionally deviates from the K-line chart, which is usually called long divergence. Even if the K-line chart has a second or third recent low, the MACD indicator has no corresponding low, but the bottom is higher than the bottom. This phenomenon indicates that the market will reverse in the future, and investors should actively intervene because the current market is completely risk-free.

3 When MACD indicator is used as a separate system, short-term can refer to DIF trend. If DIF falls from top to bottom and crosses the O-axis, it can be seen that the general trend may enter a short market, which indicates that the general trend will weaken and should arouse investors' vigilance. In the short-term market, investors bear more risks than returns. If MACD falls from the top to the empty O-axis, confirm that the general trend has entered the short market. Investors should adopt a wait-and-see strategy to avoid market risks and ensure the profits earned in the bull market. If the DIF crosses the O-axis from bottom to top, it can be seen that the megatrend may spread into a bull market. It indicates that the general trend will be strengthened and some funds should be involved. If MACD crosses the O-axis from bottom to top, it is confirmed that the general trend has entered a bull market. Investors can boldly hold shares and actively intervene. In a bull market, the benefits outweigh the risks.

4 In the MACD indicator, the red energy column and the green energy column represent the strength of bulls and bears respectively. Their response to the market is ahead of the short-term moving average DIF. In MACD index, the process of energy release is a gradual process, usually gradually enlarged. Oriental philosophy emphasizes that "yang is abundant, yin is abundant, and it is strong". When using the energy column, the conclusion is that when the K-line graph rises nearly 90 degrees, coupled with the rapid amplification of the red energy column, it shows that the top of the general trend is near. Especially when two adjacent red energy columns are connected, the market will be more rapid. On the contrary, in the short market, this phenomenon is also true. Now I am familiar with it.

5 In the process of using MACD indicators, there are two points to pay attention to. First, the MACD indicator is not necessarily credible for judging the short-term top and bottom, and can only be judged by combining the medium-term deviation rate and the ADR indicator in the static money dragon. Secondly, the analysis of weekly MACD index is better than that of daily MACD index.

. In short, when using MACD indicators, we must determine the attributes of the market. That is, whether the current market is bull market or short market. According to different market attributes, different strategies are adopted to avoid risks and ensure profits. In specific operations, the golden cross of MACD is usually an important buying opportunity. First of all, according to the analysis of its main points, when the DIF and MACD lines are below the 0-axis and far away, they turn from descending to leveling, and the golden fork formed by slow MACD on the fast DIF line is a good short-term buying opportunity, but it must be noted that the judgment of the distance between DIF and MACD is mainly based on historical records. The gold fork that appears above the 0 axis cannot be too far away from the 0 axis. Otherwise, its reliability will be greatly reduced. It is more inclined to connect the red columns in the red ocean into a belt, and the DIF crosses the MACD forward above the 0 axis to form a golden cross, in which the line reliability is better. At the same time, it is also in line with the stock market. There are many opportunities in the strong market, and it is difficult for the weak market to make money.

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