I think that since some technical graphics exist, there must be a reason for them. It is recommended that you learn more about this knowledge. Of course, some graphics can be faked, but they cannot be completely trusted. I often see them. There are MACD, KDJ, OBV, etc., plus the general trend of the stock index and value considerations.

The following provides some explanations and analysis skills of technical graphics, I hope it will be useful to you.

Practical skills of the MACD indicator

The practical skills of the MACD indicator mainly focus on two major aspects: the "golden cross" and "dead cross" of the MACD indicator, and the red and green columnar lines in the MACD indicator. The following uses the MACD indicator with the daily parameters of (26, 52, 52) on the analyst software to reveal the buying and selling and wait-and-see functions of the MACD indicator. (Note: The MACD indicator selection and usage methods are the same on Qianlong software and analyst software).

1. Buy signal

(1) Analysis of the intersection of DIF line and MACD line

1. Weak "golden cross" in the area below the 0 value line ”

When the DIF line and MACD line in the MACD indicator run downward for a long period of time away from the area below the 0 value line, when the DIF line begins to run sideways or slowly moves upward toward MACD When the DIF line then breaks through the MACD line upward, this is the first "golden cross" of the MACD indicator. It means that after the stock price has fallen for a long period of time and consolidated at a low level, the stock price will begin to rebound upward after a relatively large decline, which is a short-term buying signal. This kind of "golden cross" only indicates that a rebound may occur, but it does not mean that the stock's downward trend has ended. The stock price may end soon and the stock price falls again. Therefore, investors should Be cautious and, on the premise of setting a good stop loss price, buy a small amount to make a short-term rebound. As shown in Figure (7-1).

2. A strong "golden cross" in the area near the 0 value line

When the DIF line and MACD line in the MACD indicator both run in the area near the 0 value line, if the DIF line Below the MACD line and breaking through the MACD line from bottom to top, this is the second "golden cross" of the MACD indicator. It means that after the stock price has risen for a period of time and consolidated at a high or low level, the stock price will begin a relatively large upward trend, which is a medium- to long-term buying signal. It may indicate that a substantial rise in stock prices will soon begin, which is a better time for investors to buy stocks. Investors should treat this kind of "golden cross" differently.

〔1〕When the stock price rises slightly at the bottom, and after a short period of sideways consolidation, and then the stock price breaks through upward with heavy volume, and at the same time, the MACD indicator shows a golden cross, it is a long-term buying signal. . At this time, investors can build long-term low positions.

[2] When the stock price starts from the bottom, there has been a relatively large upward trend, and after a relatively long period of mid-term retracement during the rise, the stock price then turns around and rises again. , and when the MACD indicator appears such a golden cross, it is a midline buying signal.

3. General "golden cross" in the area above the 0 value line

When the DIF line and MACD line in the MACD indicator both run in the area above the 0 value line, if the DIF line Turning around below the MACD line and breaking through the MACD line from bottom to top is the second "golden cross" of the MACD indicator. It indicates that after a period of high-level correction, the stock price has begun a new round of upward trend, which is the second buy signal. At this time, aggressive investors can increase their purchases of stocks in the short term; prudent investors can continue to hold shares and wait for the price to rise.

(2) Column line analysis

1. Red columnar line

The release of red columnar line indicates that the bull power in the market is beginning to be stronger than the short power. The stock price will start a new round of rising trend, which is a relatively obvious buying signal. For this buying signal, investors should also analyze it from three aspects.

(1) When both the DIF line and the MACD line are running above the 0 value line, it means that the stock market is in a bull market and the stock price will continue to rise. When the MACD indicator goes through a brief correction above the 0 value line and the red columnar line is released again, investors can continue to hold shares long, and those with short positions can buy on dips.

(2) When both the DIF line and the MACD line are running below the 0 value line, it means that the stock market is in a short market and the stock price will continue to fall to the bottom. When the green column line in the MACD indicator runs low for a long period of time and then slowly shrinks, if the red column line appears, it indicates that the stock price may rebound but the mid- to long-term downward trend has not completely changed. At this time, aggressive investors can buy a small amount of stocks in the short term under the premise of setting a good stop loss point; prudent investors can continue to wait and see.

(3) When both the DIF line and the MACD line are running in the area below the 0 value line, but after these two lines pass through a "golden cross" at a low level, their running directions begin to move upward at the same time and become more and more When approaching the 0 value line upward, if the red columnar line begins to release at this time (especially the second release), it indicates that the stock price has ended its downward trend after a long period of consolidation, and the stock price will begin a round driven by a large number of buying orders. New uptrend. This is also a good time for investors to buy stocks in the medium to long term. At this time, investors should buy the stock in time or hold the stock until it rises. When the DIF line and MACD line in the MACD indicator have been running near the 0 value line for a long time, and the green columnar line forms a double bottom pattern with one bottom higher than the other, it indicates that the long-term downward trend of the stock price may end, and the stock price will With the cooperation of trading volume, a new round of medium and long-term rising prices has begun. At this time, investors can start to build positions in batches on dips.

1. Moving Average Convergence and Divergence MACD

Moving Average Convergence and Diver-gence (Moving Average Convergence and Diver-gence)

Similar to the moving average indicator, The difference is that the exponent needs to be smoothed. When applying MACD, you should first calculate the fast (12-day) moving average and the slow (26-day) moving average, and use these two values ??to measure the "difference" between the two (fast and slow lines). value" basis. The so-called "difference" (DIF) is the 12-day EMA value minus the 26-day EMA value. Therefore, in the ongoing rally, the 12-day EMA is above the 26-day EMA. The positive difference (+DIF) will become larger and larger. On the contrary, in a downtrend, the difference may become negative (-DIF) and become larger and larger. As for the market starting to reverse, to what extent the positive or negative difference must be narrowed to truly be a signal of market reversal. The reversal signal of MACD is defined as the 9-day moving average (9-day EMA) of the "difference" .

Research and judgment skills:

1. The DIF value and the MACD value are both moving upward on the X axis, and the market is a bull market, and vice versa is a bear market.

2. On the X-axis, when the DIF value crosses the MACD value upward, it is a buy signal. This crossover below the X-axis is only suitable for short sellers to close their positions.

3. Under the X-axis, when the DIF value crosses the MACD value downward, it is a sell signal. This crossover occurring above the X-axis is only suitable for bulls to close their positions.

4. Divergence signal. When the trend of the index curve is upward, but the trend of the DIF and MACD curves goes against it, it is a signal that the general trend is about to turn downward.

When the ADX in the DMI indicates that the market is consolidating or the market range is too small, avoid using MACD trading.

2. Trend Index DMI

The basic principle of the Directional Movement Index is to explore the "equilibrium point" in the process of rising and falling prices, that is, the relationship between supply and demand changes from tense to The situation achieves "harmony" through price changes, and then the mutual influence of price supply and demand leads to a tense cycle. DMI can generate trading signals of indicator crosses and can determine whether the market has started. Numerous technical indicators on the market must be used in conjunction with DMI. Rather than relying on subjectivity and intuition to judge the two forces of buyers and sellers, we should make it scientific.

DMI judgment skills:

1. When (+DI) crosses (-DI) upward, it is a buying signal. If ADX stops falling and rebounds, the upward trend will be stronger . If ADX rises to a certain level and then turns back down, it means that even if it rises in the future, the upward trend will slow down, and it will not last for too long, and then it will turn down until ADX turns back up again.

2. When (━DI) crosses (+DI) upwards, or (+DI) falls below (━DI), it is a sell signal. If ADX climbs upward, there will be a sharper decline. It was not until ADX peaked and fell back that the bottom was confirmed. The subsequent decline was also slower, and a rebound occurred.

3. When the stock price peaks, ADX will then peak. At this time, ADX is around 70, so the function of ADX is to assist in identifying the reversal signals of rising or falling trends.

4. When (+DI) and (━DI) cross, a buy and sell signal appears, and then ADX crosses ADXR, which is the last trading opportunity.

5. When ADX breaks away from the 20-30 range and climbs up, regardless of whether the price is rising or falling at that time, it can be determined that a market of considerable magnitude will occur.

6. ADX is below +DI and -DI, ??especially when it is below 20, which means that the stock price has fallen into a quagmire and is in a dull consolidation period. At this time, you should exit the market and wait and see.

7. Once ADX is above 50, it suddenly turns downward. At this time, whether the price is rising or falling, it means that the market is about to reverse.

3. Divergence of Moving Average DMA

DMA (Divergence of Moving Average), also known as MAOSC (MovingAverage OSCillator), is a very useful indicator for short-term entry and exit. An upward bottom indicates buying. , a decline from the peak indicates selling. You can refer to the MACD indicator.

4. Exponential Moving Average EXPMA The Exponential Moving Average can adjust the direction immediately with the rapid movement of stock prices, effectively solving the problem of lagging signals.

Research and judgment skills:

1. When the fast EXPMA line crosses the slow EXPMA line from bottom to top, it will push up the stock price.

2. When the fast EXPMA line crosses the slow EXPMA line from top to bottom, it will push down the stock price.

3. When the stock price touches EXPMA from bottom to top, it is easy to encounter heavy pressure.

4. When the stock price touches EXPMA from top to bottom, it is easy to rebound from big support.

5. When it is judged that the market will fluctuate significantly in an instant, abandon the use of EXPMA indicator and use CCI together with ROC instead.

5. Triple Exponentially Smoothed Moving Average TRIX

Triple Exponentially Smoothed Moving Average (Triple Exponentially Smoothed Moving Average), using the signal of this indicator during long-term operations, can filter out some short-term fluctuations Interference to avoid too frequent transactions, resulting in some unprofitable transactions and loss of handling fees. This indicator is an ultra-long period indicator. If you trade according to the signal of this indicator for a long time, the profit percentage will be greater than the loss percentage, and the profit will be considerable.

Research and judgment skills:

1. When planning to conduct long-term control or investment, TRIX is the most suitable trend indicator.

2. Buy when TRIX crosses TMA from bottom to top.

3. When TRIX crosses TMA from top to bottom, sell.

6. BRAR energy indicator

The AR indicator is also called the buying and selling momentum indicator. It is based on the opening price of the day and is compared with the highest and lowest prices of the day, and then statistically calculated. The strength indicator comes out. The stock price starts from the opening price every day, and after various fluctuations, ends at the closing price. Based on the opening price of the day, we calculate the difference between the opening price, the highest price and the lowest price of the day, and make a cumulative comparison. If the trading momentum is higher than the opening price, it can be judged that the current situation is strong and it is advisable to buy and hold. On the contrary, if the trading momentum is lower than the opening price, it can be judged that the current situation is weak, and it is better to sell or wait and see.

Research and judgment skills:

1. Usually the trend of AR and the stock price are in the same direction, that is, if AR falls, the general trend will also fall.

2. AR often has the ability to lead when a top or bottom is about to form.

3. AR indicator is relatively normal between 80 and 120.

4. If the price is below 50, you can consider buying stocks. If the price is above 150, you should pay attention to the stock price retracing or falling.

5. When AR rises from 60-80-120-150 to above 180, you must always pay attention to the high chance of stock price reversal and decline.

6. When AR gradually decreases from 100-80-60-40, it means that energy has accumulated to a certain level of maturity.

The BR indicator, also known as the buying and selling willingness indicator, is a statistical strength indicator based on yesterday's closing price and comparison with today's highest and lowest prices. Because changes in stock prices stimulate investors' willingness to buy and sell, we use the previous day's closing price as the basis to use numbers to express the fluctuations in the market on that day as a method of predicting future stock price trends. Procedure:

1. Subtract yesterday's closing price from today's lowest price, and the balance is listed in the negative side. Then subtract today's highest price from yesterday's closing price, and the balance is listed in the positive side, day by day. statistics.

2. If the market gapps down and today’s highest price is lower than yesterday’s closing price, then the momentum of the positive side is suppressed, that is, the positive side of the day becomes a negative number, and the same is also listed in the positive side. inside the column.

3. If the market jumps up and today's lowest price is higher than yesterday's closing price, this means that the kinetic energy of the negative side is suppressed, that is, the negative side of the day becomes a negative number, and the same is true. The negative balance must be listed in the negative column.

4. If there is only one positive square on the day, it will be a positive number, and the negative square will be a negative number of the same amount; on the contrary, if the transaction price is lower than yesterday's closing price, the positive square will be a negative number, and the negative square will be a negative number. is a positive number with the same amount.

5. If there is neither rise nor fall on that day, and there is only one transaction price, both the positive and negative sides of that day will be zero.

6. If there is no transaction on that day, the positive and negative of that day will also be zero; and if there is a transaction the next day, the closing price of the previous transaction day will still prevail.

7. When ex-rights or ex-dividends occur, the weight value or dividend should be deducted from the closing price of the previous day, that is, the plus or minus square number is calculated based on the ex-rights or ex-dividend declaration price.

Evaluation skills:

1. Generally, BR>300 is the overbought zone and BR<50 is the oversold zone.

2. Its normal range is between 70 and 150, and the range from the periphery of the normal zone to the overbought and oversold range can be regarded as a warning zone.

3. BR is best used in conjunction with AR to exert its effect.

4. When both AR and BR fall sharply, it means that the stock price peak is near, and you should take profits on your holdings. When BR is lower than AR, you can buy on dips. On the contrary, BR rises rapidly, while AR consolidates. Or when there is a small rebound, sell on high prices.

5. When BR exceeds 300, it is easy to trigger profit-taking selling pressure.

6. When BR drops from 80-60-40 to a low level and continues for a long period of time, there is a high possibility that the stock price is reaching a bottom.

7. BR first hovers at an equilibrium state near 100, and then starts to rise. Starting from the low point in this equilibrium state, when BR doubles, it is a good opportunity to sell at a profit.

8. When the BR drops by half from a high level, if you choose to buy when the stock price falls back, the success rate can be as high as 95%.

9. When the BR exceeds 300 or 400 but still does not move downwards When there are signs of turning, you should immediately give up using the BR indicator and use the CR indicator instead.

7. Striped Energy Line CR

The calculation formula of the CR indicator is the same as that of BR, except that yesterday's closing price in the formula is changed to yesterday's middle price. CR can measure the popularity and the potential of price momentum; CR can display pressure bands and support bands, which functionally can assist the deficiencies of BRAR. Procedure:

1. Subtract today's lowest price from yesterday's middle price, and the balance is listed in the negative square. Then subtract today's highest price from yesterday's middle price, and the balance is listed in the positive square. Day by day statistics.

2. If the market gapps down and today’s highest price is lower than yesterday’s mid-price, then the kinetic energy of the positive side is suppressed, that is, the positive side of the day becomes a negative number, and the same is also listed in the positive side. inside the column.

3. If the market jumps up and today’s lowest price is higher than yesterday’s middle price, this means that the kinetic energy of the negative side is suppressed, that is, the negative side of the day becomes a negative number, and the same is true. The negative balance must be listed in the negative column.

4. If there is only one positive number on the day, the negative number will be the same amount; on the contrary, if the transaction price is lower than yesterday's mid-price, the positive number will be a negative number, and the negative number will be. is a positive number with the same amount.

5. If there is neither rise nor fall on that day, and there is only one transaction price, the positive and negative sides of that day are both zero.

6. If there is no transaction on that day, the positive and negative of that day will also be zero; and if there is a transaction the next day, the middle price of the previous transaction day will still prevail.

7. When ex-rights or ex-dividends occur, the weight or dividend should be deducted from the previous day's mid-price, that is, the plus or minus squares are calculated based on the ex-rights or ex-dividend declaration price. Research and judgment skills: 1 . When CR wants to cross the area between lines A and B from bottom to top, the stock price will encounter interference from secondary pressure; when CR wants to penetrate this area from top to bottom, the stock price will encounter interference from secondary support. .

2. When CR wants to cross the area between the C and D lines from bottom to top, the stock price will encounter strong pressure interference; when CR wants to cross the area from top to bottom, the stock price It will encounter strong support interference.

3. CR will also deviate from the stock price, especially in the high price zone of the stock price.

4. When CR falls below the four lines A, B, C, and D, and climbs 160% from the low again, it is an opportunity to sell for short-term profits.

5. When CR falls below 40, the chance of the stock price forming a bottom is quite high.

6. When CR is higher than 300-400, the stock price can easily reverse downward.

7. When the four lines A, B, C, and D cross at one point almost at the same time a few days in front of CR, the time position of that point is the rising or falling point of the stock price. . Once this signal appears, its relative probability of success is very high.

9. Popularity Line OBV

Principle:

Explained from a mechanical point of view, the trading volume is regarded as the energy of the stock price rising and falling, plus the constant movement of the movers. The law of inertia of what is moving and what is still; the principle of gravity that rising objects will fall sooner or later. Otherwise, only by continuously supplying more energy can the original direction be maintained.

Advantages: It is a leading indicator of stock prices and can predict the coming of high or low prices.

Disadvantages: It is a quantitative indicator in itself and has a warning function. It is necessary to refer to other indicators for buying and selling points.

Research and judgment skills:

1. When the OBV line falls and the stock price rises, it is a sell signal.

2. When the OBV line rises and the stock price falls, it is a buy signal.

3. When the OBV line rises slowly, it is a buy signal and vice versa.

4． The OBV line rises sharply, indicating that the trading volume has increased too quickly and you should be prepared to sell.

5. When the OBV line turns from positive to negative, it is a downtrend and you should sell your holdings. On the contrary, when the OBV line turns from negative to positive, it is a buy signal.

6． A sky-high price M head may be formed. If the second top occurs, the OBV line is unable to rise, and the trading volume shrinks instead. At this time, it is easy to form a M head and the stock price falls, which is one of the divergence phenomena.

7. On the contrary, a low-priced W bottom may be formed. If the OBV line rises ahead of the second bottom and the trading volume expands, it is easy to form a W bottom and the stock price rises, which is the second divergence phenomenon.

8． If the downtide in the last uptide falls below the low of its previous downtide, it can be used as the basis for identifying a reversal.

9. If the rising tide in the last falling tide breaks through the high point of its previous rising tide, it can be used as the basis for identifying a reversal.

10． When OBV moves horizontally for more than a month and is roughly horizontal, it means that the market is in a long period of consolidation. At this time, big market trends may happen at any time.

10. Accumulation Swing Index (ASI)

The Accumulation Swing Index combines the opening, highest, lowest and closing prices into a curve to replace the real trend and form The true market line that best represents the current market conditions. ASI points out the short-term trend of stock prices and can determine the direction of stock prices one step ahead.

Research and judgment skills:

1. The trend of ASI is almost synchronized with the stock price. If ASI leads the stock price and breaks through the previous ASI high or low point early, the stock price will definitely rise after the next day. Break through the previous high or low.

2. Once the rising ASI falls below the previous significant N-shaped turning point, it can always be regarded as a stop-loss selling signal.

3. When the stock price trend is higher than the previous wave, but ASI does not form a "bullish divergence" relative to the new high, you should sell.

4. When the stock price trend is lower than the previous wave, but ASI does not form a "bear divergence" relative to the new low, you should buy it.

5. Most of the timing of ASI is synchronized with the stock price trend. Investors can only look for a few stocks that have led to breakthroughs among many stocks.

6. Investors buy stocks early based on ASI, and then the stock price successfully breaks through the pressure. Once a profit is generated, it is unimaginable how much further gains will occur in the future, and they should sell immediately to make a profit.

7. ASI and OBV also maintain "N"-shaped fluctuations, and the main method of observing ASI is to break through or fall below the "N"-shaped high and low points.

11. Ease of Movement Index EMV

Ease of Movement Value (Ease of Movement Value) is an indicator that measures the ease of stock price fluctuations. It divides the relative trading volume by the relative amplitude as the basis for measuring the percentage fluctuation of the central price of the stock price to obtain the relative fluctuation range of the central price of the stock price.

Research and judgment skills:

1. When EMV crosses the 0 axis from bottom to top, buy.

2. When EMV crosses the 0 axis from top to bottom, sell.

3. If the average line of the EMV indicator crosses the 0-axis as a signal, the trading results will be more satisfactory.

4. When the ADX or ADXR in DMI displays an "indicator failure" signal, you should stop using the EMV indicator immediately.

12. William's Variable Accumulation Distribution (WVAD)

William's Variable Accumulation Distribution is a volume-price indicator that weights trading volume. First calculate the price between the opening and closing of the day as a percentage of the total fluctuation of the day, and then use this percentage to weight the trading volume of the day and perform a moving average.

Research and judgment skills:

1. The moment WVAD changes from negative to positive, it is regarded as a long-term buying point.

2. The moment WVAD changes from positive to negative, it is regarded as a long-term profit point.

13. Relative Strength Index RSI

Relative Strength Index:

Note: The general RSI calculation method is when the 6-day RSI indicator When it is above 85, or when it is below 20, it is a serious overbought or oversold signal. Using the above method to calculate, when the RIS indicator is above 90 or below 15, it is a serious overbought or oversold signal.

Research and judgment skills:

RSI has been widely used in the market and is one of the main technical indicators. Its main feature is to calculate the power of buyers and sellers within a certain period of time, as overbought, overbought, and overbought. The reference for selling is used together with the K-line chart and other technical indicators (three to five types) to avoid selling and buying too early, resulting in less profit and more loss.

1. Take the six-day RSI value as an example. Above 90 is overbought, and below 15 is oversold. When there is a strong rise, you can sell when it becomes a bull near 90. In an emergency, When it falls, buy when it bottoms out at W near fifteen.

2. When the stock price reaches a new high and RSI also reaches a new high, it means that the market outlook is still strong. If it does not reach a new high, it is a sell signal.

3. When the stock price reaches a new low and the RSI also reaches a new low, the market outlook is still weak. If the RSI does not reach a new low, it is a buying signal.

4. During the consolidation period, if one bottom is higher than the other, it means the bullish trend is strong. The trend may rise for a while, which is a buying opportunity. On the contrary, if the bottom is lower than the other, it is a selling opportunity.

5. There are generally two different periods of RSI, long and short, on the graph.

6. When the short-term RSI is below 20 and crosses the long-term RSI from bottom to top, it is a buying signal.

7. When the short-term RSI is above 80 and crosses the long-term RSI from top to bottom, it is a sell signal.

8. When the stock price is lower than the previous wave, on the contrary, when the RSI is higher than the previous wave, the stock price can easily reverse and rise.

9. When the stock price is higher than the previous wave, on the contrary, when the RSI is lower than the previous wave, the stock price can easily reverse and fall.

10. RSI is above 80 and enters the overbought zone, and the stock price is prone to forming a short-term retracement.

11. When the RSI is below 20 and enters the oversold zone, the stock price is prone to a short-term rebound.

12. The RSI was originally in the weak zone below the 50 mid-range line, and then reversed upward and broke through the 50 mid-range line, which means that the stock price has become stronger.

13. The RSI was originally in the strong zone above the 50 mid-range line, and then reversed downwards and fell below the 50 mid-range line, which means that the stock price has weakened.

14. Connect the two consecutive bottoms of RSI and draw a tangent line sloping upward from left to right. When RSI

falls below this tangent line, it is a very important trend. Good sell signal.

15. Connect the two consecutive peaks of RSI and draw a tangent line sloping downward from left to right. When RSI

breaks through this tangent line upward, it is a good buy signal.

16. RSI can be used as a signal for buying and selling points based on head and shoulders top, head and shoulders bottom, triangle and other patterns.

17. RSI in the long market: 3 days > 5 days > 10 days > 20 days > 60 days

RSI in the short market: 3 days < 5 days < 10 days < 20 Day < 60th

18. Stop And Reverse Operating System (SAR)

Stop And Reverse, also known as Parabolic Time Price system PTP is an analysis tool that pays equal attention to price and time.

Principle:

SAR is a systematic tool that uses a parabolic method to adjust the position of the stop loss point at any time.

Advantages: 1. Simple operation, clear closing point.

2. If you are long or short, taking a long-term position can avoid selling early and losing profits in the later period. Disadvantages:

1. During the game, the market fluctuates up and down, and the error rate is high.

2. Calculation and drawing are complicated.

3. In a "trendless market", SAR appears very frequently, causing signal followers to lose money.

Research and judgment skills:

1. SAR is undoubtedly the indicator with the clearest buying and selling points among all indicators and the easiest one to coordinate with the operation strategy.

2. SAR can eliminate investors’ doubts and act as soon as the signal comes out.

3. When the stock price curve is above the SAR curve, it is a bull market.

4. When the stock price curve is below the SAR curve, it is a short market.

5. When the stock price curve falls below the SAR curve from top to bottom, it is a sell signal.

6. When the stock price curve breaks through the SAR curve from bottom to top, it is a buying signal.

7. If you use the SAR indicator for a long time, you can only make a small loss and make a big profit, but you will never be trapped in one go.

16. Stochastic indicator KDJ

Stochastics was invented by Dr. George Lane. It is a set of technical analysis tools commonly used in European and American futures markets. Risky fluctuations are large and require shorter-term and sensitive indicator tools. Therefore, technical analysis of short- and medium-term investments is also more suitable. The stochastic indicator combines the advantages of momentum concepts, strength indicators and moving averages. The random concept of KD line is far more practical than the moving average. In the field of technical analysis, it can actually be divided into two areas: graphic analysis and moving average theory. Moving averages are traditionally calculated based on the closing price, so they cannot show the true volatility of a market.

In other words, the highest or lowest price on the current day or in recent days cannot be reflected in the moving average data. Some experts realize these shortcomings and create some more advanced technical theories to apply the moving average. , to develop. The KD line is one of the representative masterpieces. The immature random value varies with the changes in the high, low and closing prices in the nine days. If the market has an obvious upward trend, it will drive the K line (fast average) and D line (slow average) upward. If the rising trend starts to slow down, it will be reflected in the K value and D value, causing the K value to fall below the D value. At this time, the short- to medium-term downtrend is established. The KD line is essentially a concept of random fluctuations, which is very correct for grasping the short- and medium-term market trends. Therefore it can be said to be a very practical tool.

Research and judgment skills:

1. When the K value is around 20 and crosses the D value from the right direction of the D value, it is a short-term buying signal.

2. When the K value is around 80 and crosses the D value from the right to the downward direction, it is a short-term selling signal.

3. Divergence phenomenon: The price reaches a new high or a new low, but KD does not have this phenomenon, which is also an important precursor to a reversal.

4. The K value forms a phenomenon where one bottom is higher than the other, and at a low level below 50, when the D value is crossed twice in a row from bottom to top, the stock price will increase significantly.

5. The K value forms a phenomenon where one top is lower than the other, and at a high level above 50, when the D value is crossed twice in a row from top to bottom, the stock price will fall significantly.

6. When the K value is higher than the 80 overbought zone, the short-term stock price is prone to fall back.

7. When the K value is below the oversold zone of 20, the short-term stock price is likely to rebound upward.

8. When the J value is >100, the stock price will form a head.

9. When the J value is <0, the stock price will form a bottom.

ASI indicator:

When ASI falls below the previous low, it is a sell signal; when ASI breaks above the previous high, it is a buy signal. When trying to pass through the high point holding area of ??the previous wave, when it is close to the high point, it is not yet certain whether it can pass through smoothly. If ASI leads the stock price and passes the previous ASI high point of the relative stock price one step early, then it can be determined that the stock price will successfully break through the high point holding zone after the next day. When the stock price moves from top to bottom and is about to cross the dense support area of ??the previous wave low, it is close to the low point and it is not yet determined whether it will fall below the support due to loss of confidence. If ASI leads the stock price and falls below the previous ASI low of the relative stock price one step early, then it can be determined that the stock price will subsequently fall below the price point support zone after the next day. When the stock price trend is higher and higher, but ASI does not form a "bullish divergence" relative to the new high, you should sell. When the stock price trend is lower than the previous wave, but ASI does not form a "bear divergence" relative to the new low, you should buy it.

SAR indicator:

1. You can use SAR as a stop loss point at any time;

2. The price rise and fall must be faster than the rise and fall of SAR Fast, otherwise a stop loss signal will be generated;

3. When SAR changes from red to green, sell;

4. When SAR changes from green to red, buy;

5. The cycle parameter of this indicator is generally set to 4 days;

6. This setting is mainly used to find stocks with long stop loss or short stop loss.

The ASI indicator has a good sell signal and should be used frequently.

VR indicator

Trading volume ratio

① When VR falls below 40%, the market can easily form a bottom.

② The VR value is generally distributed around 150%. Once it exceeds 250%, the market is very easy to produce a long market.

③ If the VR exceeds 450%, you should have a high-level crisis awareness and be aware of the possibility of reversal at any time. It can be used in conjunction with CR and PSY.

④ The use of VR is more reliable when looking for the bottom. When confirming the head, it should be used in conjunction with other indicators.

OBV provides insight into the inflow and outflow of banker funds

(1). OBV cannot be used alone and must be used in conjunction with the stock price curve to be effective.

(2). When there is a "divergence" between the OBV curve and the stock price trend, it can be used to determine whether there is a situation where large institutional investors are "collecting" or "distributing" chips in the current market conditions. The so-called "collection" means that institutional operators secretly sell goods in the market to suppress the market and eat goods at the same time. In fact, they sell less and buy more; while "distribution" means that institutional operators secretly sell on highs and buy on lows. , in fact, more goes out and less comes in. Therefore, the OBV curve can help investors speculate whether the market situation is in the "collection phase" or "distribution phase".

(3) The rise and fall of the .0BV curve plays an important role in further confirming the current stock price trend.

① When the stock price rises and the 0BV curve also rises, it can be confirmed that the current trend is upward.

② When the stock price rises but 0BV does not rise accordingly, investors should be cautious about the current upward trend, because the divergence between 0BV and stock price has told us in advance that the upward trend has insufficient stamina. , there is a possibility of reversal at any time.

③When the stock price falls and the OBV line rises, it indicates that there are large investors collecting chips, and they have strong ability to bear the downward trend, and the stock price may stop falling and rebound at any time.

When the stock price falls and the 0BV curve also falls, it can be confirmed that the current trend is downward. It shows that the main force is gradually "distributing" and you should leave the market immediately and wait and see.