Usage:
1.DIFF breaks through the DEA buy signal.
2.DIFF falls below the DEA sell signal.
3. number three. DEA line deviates from k line, and the market reverses signal.
4. Analyze the MACD column line, change from red to green (from positive to negative), and sell the signal; Change from green to red, buy signal.
Extended data
Under normal circumstances, when the DIFF line deviates from the stock price, the market is likely to reverse soon. The divergence between DIFF line and stock price can be divided into top divergence and bottom divergence.
1, top deviation
Top deviation refers to the fact that the share price has hit a new high while the DIFF indicator has failed to hit a new high at the same time. The appearance of top deviation often indicates that the stock price trend is about to weaken. When there is a top deviation, investors need to be prepared to sell stocks at any time in combination with other technical indicators such as K-line shape.
2. Bottom deviation
Bottom deviation refers to the form that the difference rises when the stock price hits a new low. When the bottom deviation appears, it often indicates that the stock price trend is about to strengthen. When the bottom deviation occurs, investors can grasp the appropriate buying opportunity in combination with other technical indicators such as K-line shape.
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