MACD indicator, also called convergence and divergence of moving average, is a technical indicator to judge the trading opportunity by using the aggregation and separation between short-term moving average and long-term moving average. What is the importance of MACD index compiled by Bian Xiao to everyone? How to use MACD indicators? I hope I can help you.
What is the importance of MACD indicators? How to use MACD indicators?
The importance of MACD indicators is manifested in:
(1)MACD indicator is the default preferred indicator in major stock and futures market software.
(2)MACD indicator is of course the most used indicator, and it is also the most effective and practical indicator tested by history.
(3)MACD indicator is an oscillation indicator calculated from the moving average, which has a good application effect on trends and volatile market.
(4) The deviation of 4)MACD index is considered as one of the best technical analysis methods.
(5)MACD indicator is the first choice for entry indicators, the beginning for many investors to enter the indicator research, and the ultimate indicator that many people still use after contacting other indicators or even creating their own indicators or using indicator combinations. The so-called "looking for her in the crowd for thousands of Baidu, suddenly looking back, that person is in the dim light."
(6)MACD indicator is one of the most commonly used entry and exit criteria for system traders, which is widely used to judge the trading points and the long and short market conditions.
MACD indicator is a trend indicator. According to the construction principle of moving average, the closing price of trend price is smoothed, and then the arithmetic average is calculated. Theoretically, it can be operated according to the position, intersection, scaling and deviation from DIF and MACDk-line.
MACD has two main functions: one is to judge the trend, and the other is to judge the callback or inflection point through deviation.
1. homeopathic operation: buy gold forks and sell dead forks.
It is chasing up and killing down, buying in a bull market and selling in a bear market.
2. Counter-market operation: sell at the top and buy at the bottom.
Under normal circumstances, indicators follow the stock price. But sometimes because of some factors, the index can't keep pace with the price, so there is a deviation. Deviation only means that there are different trends between prices and indicators. The price hit a new high, but the index is falling; Or prices are falling, but the index is rising.
What are the characteristics of MACD?
1. When the values of DIF and MACD are positive, they are all above the 0 axis, which is a bull market. If the DIF line breaks through the MACD line upwards and forms a golden fork, this is a buy signal; If the DIF line breaks through MACD downward, it constitutes a death cross. For the signal of falling back, you can take profits in the short term and not short in the long term.
2. When the values of DIF and MACD are negative, they are all below the 0 axis, which is a short market. If the DIF line breaks through the MACD line downward, it constitutes a death cross, which is a sell signal; If the DIF line breaks through the MACD upwards, it constitutes a golden fork, which is a rebound signal, which can be replenished in the short term and cannot be chased up.
3. The downward moving MACD turns to upward moving, and the DIF crosses the MACD upward to produce a golden cross, which shows that many parties have certain advantages. It can be divided into two phenomena: ①MACD is in the positive area, that is, above the 0 axis, which usually means that the filing is temporarily over and can be followed up; (2) ②MACD is in the negative voltage region, that is, below the 0 axis. This phenomenon usually indicates the beginning of a rebound, and a rebound can be made with the least and most funds.
4. The MACD running upward turns to running downward, and the DIF runs downward through the MACD to produce a dead fork, indicating that the empty side has a certain advantage.
Prevention measures of MACD deviation
Although the success rate of MACD back relaxation in application is relatively high, there is also the possibility of back relaxation trap.
The main performance is as follows: after the initial point of bottom relaxation is formed after the continuous plunge, the index begins to form bottom relaxation obliquely, but the stock price does not rebound because of this, but it is flat or even falling. After the index rises to the pressure level, it continues to break down and the bottom relaxation trap appears! It is worth noting that the indicator of the relaxation of the high bottom that reappears after the tension trap is often the real bottom.
In the same way, the stock price is prone to similar top trap after continuous skyrocketing, mainly because it is difficult to match the energy level with the index reflection degree. The main feature of MACD operation lies in its robustness, but its defects are exposed in the skyrocketing market, that is, the energy contained in this kind of market can not be released at one time, and it needs to be relaxed many times or formed at a higher level to give a real reversal point signal.
In view of this, in the case that the stock price continues to plummet and skyrocket, and MACD has a big opening breakthrough, it is still not appropriate to immediately apply the general loosening principle for reverse operation. It is best to wait for multiple back relaxations, return to the low point and form a high back relaxation before intervening.
1, deviation means that it is only possible, and there is no probability of 100%, but the probability of 70% is good.
2. Deviated from the direction of only displaying the price, but there was no space and time to display the price. Pay special attention when using.
3. Deviation of indicators is often a sign of market turning, but it does not necessarily have an inevitable result. Attention should be paid to the deviation in operation, but it is not allowed to intervene in advance.
4. Deviation can be used as a warning signal, but not as an operation signal. It must be verified by other signals, and it can be operated with high probability.
5. Don't guess the formation of deviation before it is exactly formed.
6. Indicator analysis is only used as an auxiliary analysis tool, not as a main analysis tool.