It is enough to talk about only one indicator. It does not mean that other indicators are not important, but that all indicators have the same usage. Once you master one indicator, all other indicators are mastered. When everyone uses indicators, whether it is macd, kdj, rsi, etc., the most troublesome thing is definitely divergence. Many friends also like to do divergence, thinking that divergence is a good signal for bottom guessing and top guessing.

However, in a trend or a unilateral trend, it is very dangerous to make divergences, because there are divergences after divergences, not just one divergence, but repeated divergences, even if one divergence is done correctly. , it is just a rebound in the trend. To use indicators well, you must solve the problem of divergence. After solving problems such as divergence and false signals, the remaining real signals will be easy to operate.

Today I will tell you about the king of indicators, MACD. Everyone is familiar with this indicator, and many of my friends use it all the time. To use an indicator well, you must first understand the details of the indicator. I won’t explain the principle. You can find it by searching online.

First, let’s talk about the composition of MACD:

1. There is a central axis with a value of 0

2. There is a curve that swings up and down around the central axis

3. There are up and down pillars

Intuitively , these three factors constitute our MACD indicator.

Let’s talk about divergence first. After divergence, there will be divergence. The divergence only gives a signal and does not represent the reversal of the trend. Moreover, there are many false signals of divergence. On the way to divergence, you may inadvertently end up taking orders against the trend. Since you use indicators to trade, you must be able to use indicators to judge trends. Just like the K-line, Dow, and waves mentioned earlier, only by being able to judge trends and shocks can you have better operability and usability in trading. Let’s use the basic characteristics of MACD to find trend-related information:

1. The central axis, which is the 0 axis. This is the most intuitive signal to distinguish the long and short market. Above the central axis is the territory of the bulls, and below the central axis is the territory of the shorts. Simply put, above the central axis are longs and below the central axis are shorts.

2. Curve, this curve in MACD, the position of the curve also has several states, long above the central axis. Short positions below the central axis, fluctuations around the central axis, and shocks.

3. Pillar. In the long trend, the pillar slopes upward. In the short trend, the pillar slopes downward.

Through the information given by the above three points, it is very simple to judge the trend

Trend judgment:

Below the central axis is bullish, and below the central axis is bullish. Short positions

When the pillars tilt upward above the central axis, bulls are the strongest; below the central axis, the pillars tilt downward, and shorts are strongest.

Trading signals: In the bull trend - the curve crosses the column and goes upward, go long; in the short trend - the curve crosses the column and goes down, go short.

In fact, these are simple contents, but the simpler things are, the easier they are to be ignored.

Look at the first picture first, the central axis determines long and short. We can see it very intuitively through the chart. Even friends who have never been exposed to trading can clearly see the long and short positions.

There are many ways to judge the trend. Most losses are not caused by the trend, but by guessing the top and bottom. The process of guessing makes it easy to trade against the trend, resulting in losses or losses. After being trapped, it is easy to increase the position and ignore risk control. Judgment of trend direction is the key to profitability in the future. No matter how the direction is judged, at least for a period of time, the price will expand in the direction you judge. Only when there is a direction, there will be success. Space, only with space can there be profit.

Everyone has seen a lot of complicated trend judgment methods. Today I will tell you that the simplest and most intuitive answer is the central axis of MACD, which does not require any technical analysis. Then operate with the trend, even if it is volatile, there is still room for profit for a period of time.

After determining the direction:

In the bull trend, the curves cross and the pillars tilt upward to go long, and only long.

In the short trend, the curves cross and the column slopes downward. Go short, and only go short.

Some friends may want to ask, why don’t we deviate? Will there be any deviation in doing so? In fact, this goes back to the point I made at the beginning, divergence only exists within the trend, that is, divergence can only be found against the trend.

Follow the trend and filter out divergences. The usage of macd actually returns to the simplest and most initial usage of state indicators. These simple and easy-to-use things are all familiar to everyone, but they are not taken seriously. In actual trading, subjective things increasingly replace the objectivity given by indicators. To use indicators well, you must respect the trends and directions reflected by the indicators and operate according to the signals.

That’s it for MADC. The trend direction given by the macd central axis is obviously not the highest point and lowest point of the trend, but there is stable space for us to make profits. This is enough . Stable space is what we should pay most attention to when trading.