The red and green columns of MACD represent the distance between DIFF and DEA:

When DIFFDEA is the red column; the red and green columns reflect the rate of change of the price, and the absolute relationship between the price and the price. The height has no proportional relationship; DIFF is also disproportionate to the price: when DIFF0, it is called a long market. At this time, if the red column changes from high to low, sometimes there is no need to rush out. It depends on whether there is support from other indicators, such as a large profit ratio. Not big, whether the KD indicator is overbought, whether the density above the chips is high, whether the main entry and exit has been significantly reduced, whether the moving average system has repeatedly oscillated, etc. If you get support, you can hold the stock until DIFF crosses DEA before selling.

MACD special analysis method

1. Form rules

1. M head, W bottom and other forms

The research and judgment of MACD indicator is OK Use the shape of MACD graphics to help judge the market.

When the red or green pillars of MACD form double tops and bottoms (i.e. M heads and W bottoms), triple tops and bottoms, etc., they can also be analyzed and judged according to the research and judgment methods of pattern theory. For example:

2. Top divergence and bottom divergence

The divergence of the MACD indicator means that the trend of the MACD indicator is exactly opposite to the trend of the K-line chart. There are two types of divergence in the MACD indicator: top divergence and bottom divergence.

(1) Top divergence

When the stock price trend on the K-line chart is higher than the previous peak, the stock price has been rising, and the MACD indicator graph is composed of red columns. The trend of the graph is that one peak is lower than the other, that is, when the high point of the stock price is higher than the previous high point, and the high point of the MACD indicator is lower than the previous high point of the indicator, this is called top divergence. The phenomenon of top divergence is generally a signal that the stock price is about to reverse trend at a high level, indicating that the stock price is about to fall in the short term, which is a signal to sell the stock.

(2) Bottom divergence

Bottom divergence generally appears in the low area of ??stock prices. When the stock price on the K-line chart is trending, the stock price is still falling, and the trend of the graph composed of green columns on the MACD indicator graph is higher than the previous bottom, that is, when the low point of the stock price is lower than the previous low point, However, the low point of the indicator is higher than the previous low point. This is called bottom divergence. The phenomenon of bottom divergence is generally a signal that the stock price may reverse upward at a low level, indicating that the stock price may rebound upward in the short term, and is a signal to buy stocks in the short term.

In practical applications, the divergence of the MACD indicator generally appears in a strong market and is more reliable. When the stock price is at a high price, usually only one divergence appears to confirm that the stock price is about to reverse, and the stock price is about to reverse. When it is low, it usually takes several repeated divergences before it can be confirmed. Therefore, the accuracy of the research and judgment of the top divergence of the MACD indicator is higher than that of the bottom divergence, which investors should pay attention to.

Trend line, pressure line

2. Analysis cycle rules

The longer the green column interval, the greater the strength and the longer the future rise

The longer the red columnar shape is maintained, the greater the room and intensity of the future decline will be, and the longer the time will be

3. Principles for modifying analysis parameters

The MACD indicator is designed for medium and long-term trends , it is not suitable to set the parameters too short

4. Moving average first rule

The MACD indicator echoes the short, medium and long-term moving averages, both belong to the trend range and have inertia.