MACD is called the exponential smoothing average convergence and divergence. It is developed from the double exponential moving average. It is composed of the fast exponential moving average (EMA) minus the slow exponential moving average. The meaning of MACD Basically the same as a double moving average, but easier to read. When MACD turns from negative to positive, it is a buy signal. When MACD turns from positive to negative, it is a sell signal.
DIF is the difference value, which is the 12-day EMA value minus the 26-day EMA value. 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" .
MACD also has an auxiliary indicator-the columnar line (BAR). In most technical analysis software, the columnar lines are colored, green below the 0 axis, and red above the 0 axis. The former represents a weak trend, and the latter represents a strong trend.
Looking at the stock K-line is a very common method of stock trading. The stock market is ever-changing. We can use the K-line to find some "regularities" to better guide investment decisions and capture returns.
Analyzing K-line is a commonly used stock trading method. Let’s give you a detailed analysis and what aspects to analyze it from.
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1. What does the stock K-line mean?
We also call K-line charts candle charts, Japanese lines, Yin-Yang lines, etc. We often call them K-lines. It was invented to better calculate the rise and fall of rice prices. After that, stocks , futures, options and other securities markets all have their place.
It looks like a column and can be divided into shadow lines and entities. We call this K-line. The part of the shadow line above the real body is called the upper shadow line, and the part below it is called the lower shadow line. The real body is divided into positive line and negative line.
Ps: The shadow line represents the highest and lowest trading price of the day, and the entity represents the opening price and closing price of the day.
The positive line is usually represented by a red, white cylinder or a black frame, while the common way to represent the negative line is by a green, black or blue solid column.
In addition to the above situations, we will also see "cross lines", that is, the solid part becomes a line.
In fact, the cross line is easy to understand. It represents the closing price = opening price of the day.
By thoroughly studying the K-line, we can keenly find the buying and selling points (although there is no way to predict the stock market, the K-line is still useful for guidance), for novices , it won’t be that difficult to operate.
Everyone should note here that K-line analysis is relatively difficult. If you have just started stock trading and do not understand the K-line yet, it is recommended to use some auxiliary tools to help you judge a stock. Is the stock worth buying?
For example, in the stock diagnosis link below, if you enter your favorite stock code, it will automatically help you with valuation, analysis of the market situation, etc. I used this method to make the transition when I first started trading stocks. Very convenient: free test of your stock’s current valuation position?
Let me briefly explain a few K-line analysis tips, some simple content to help you know as soon as possible.
2. How to use stock K-line for technical analysis?
1. The real line is a negative line
At this time, the trading volume of the stock needs to be analyzed. If the trading volume is not large, it indicates that the stock price may fall in the short term; if there are transactions If the volume is large, the stock price may fall for a long time.
2. The real line is positive.
What does it mean that the real line is positive? It means that the stock price has more momentum to rise. As for whether it is a long-term rise, it still needs to be judged in conjunction with some other indicators.
For example, factors/indicators such as market conditions, industry prospects, valuations, etc. However, due to space issues, we cannot go into details. You can click on the link below to learn: A complete collection of basic stock market knowledge necessary for novices
p>Response time: 2021-09-06, the latest business changes are subject to the data displayed in the link in the article, please click to view