After using MACD indicator, many people say it is very good. The classic of MACD lies not only in choosing bargain-hunting, but also in capturing strong rising points and choosing the best trading points.
Smoothing the Similarities and Differences Moving Average (MACD) is a double smoothing operation, which uses fast (short-term) and slow (long-term) moving averages and their signs of aggregation and separation. Try to develop on the basis of the moving average. The general criteria for judging MACD indicators are based on fast and slow moving averages, red and green bars and their shapes. Such as relative position, intersection, column values, etc.
The shape of MACD, often seen in the M head and W bottom. When the figure composed of red columns and green columns of MACD presents double top (bottom) and triple top (bottom) shapes, it can also be analyzed and judged according to the judgment method of morphological theory.
Deviation, that is, top deviation and bottom deviation, the deviation of MACD indicator means that the trend of MACD indicator chart is just the opposite of that of price K-line chart. For example, when the trend on the K-line chart is higher than the peak, and the trend of the graph composed of red columns on the MACD indicator chart is lower than the peak, this is called the top deviation, which is a signal that the high position is about to reverse.
In practice, the deviation of MACD indicator is usually reliable in a strong market. When the price is at a high level, it is usually confirmed that the price is about to reverse as long as there is a deviation. When the price is at a low level, it usually needs to deviate several times to confirm. So the top deviation of this index is more accurate than the bottom deviation.
MACD is equal to the quadratic smoothing of the moving average, which eliminates the influence of accidental factors on the price and has a more mature grasp of the trend. It has the same disadvantage as the moving average, that is, it often sends out wrong signals during consolidation, and the index cannot be quantified, that is, it is impossible to judge the extent of rise or fall.
In the market, the change of MACD has such a rule: when the price falls, the MACD green column gradually enlarges. When the green column has the highest point (the longest green column), the price often corresponds to the low point of the band; When the price rises, the MACD red column gradually enlarges. When the red column has the highest point (the longest red column), the price often corresponds to the band high point.
According to these laws, we can sum up: when the price falls, the MACD green column is gradually enlarged, and the green column is bought when the highest point appears; As the price rises, the MACD red column is gradually enlarged and sold at the highest point. This kind of profit is the maximum operation method.
In the process of futures trading, MACD indicator is widely used, but in order to predict the future price changes more clearly, it is necessary to combine other quantifiable indicators, such as cjl and KDJ indicators, and the effect will be more intuitive and clear.