The main indicator of the trend is the bollinger band in the bollinger band. Bollinger was invented by Bollinger, also called Bollinger, which is a widely used path analysis index in various investment markets. Generally, prices fluctuate within a certain range, and the width of the range represents the range of price changes. The wider the range, the greater the price change, and the narrower the price change.
The bollinger Band consists of three parts: the lower part, the upper part and the middle part. When the price breaks through the resistance line (or support line), it indicates the time to sell (or buy). Before Bullinger invented the Bollinger Band, similar path analysis indicators had been used in the financial market, but later Bullinger improved and systematized this method. Bullinger's most important contribution can be said not to invent the Bollinger Band Index, but to emphasize the concept of relative height when using the Bollinger Band Index, and to implement this idea in his analysis. Although some investors have realized that high and low positions are relative before, few people believe this idea and practice it seriously.
Basic application methods of bollinger bands;
1. When the price crosses the resistance line, there will be a retracement, which is a selling opportunity.
When the price goes down through the support line, it will rebound, which is the buying opportunity.
When the price rises along the resistance line, it is also the time to sell, although there is no breakthrough.
When the price falls along the support line, it is also a buying opportunity, although there is no breakthrough.
5. When the bandwidth of the bollinger Band is very narrow, it is a signal that the market is about to choose a breakthrough direction. Be cautious when using this method, because at this time, there will often be false breakthroughs in prices, and investors will have to wait until the breakthrough direction is clear and the bandwidth of the Bollinger Band is enlarged before intervening.
The energy indicators mainly look at MACD and RSI. MACD—— A Common Indicator of Gold Technical Analysis
MACD is a technical tool developed according to the advantages of moving averages, which mainly uses two smooth moving averages, long-term and short-term, to calculate the differences between them. This indicator can get rid of the false signals that often appear in simple moving averages and retain the advantages of moving averages. However, due to the low sensitivity of MACD indicator to price changes, it is a medium-and long-term indicator, so it is not effective in the consolidation market.
Calculation formula:
MACD index consists of positive and negative difference (DIFF) and difference average (DEA). The former is the core of the index, and DEA is the auxiliary. DIFF is the difference between fast smma and slow smma, hence its positive and negative difference. The difference between fast and slow is that exponential smoothing uses different parameters, fast is short-term and slow is long-term. Basic application method:
1.MACD golden fork: DIFF breaks through DEA from bottom to top, which is a buy signal.
2.MACD dead fork: DIFF breaks through DEA from top to bottom, which is a selling signal.
3.MACD green turns red: MACD value turns from negative to positive, and the market turns from short to long.
4.MACD turns from red to green: MACD value turns from positive to negative, and the market turns from long to short.
5.DIFF and DEA are both positive values, that is, when both are above the zero axis, the megatrend belongs to a bull market, and DIFF breaks through DEA upwards and can be bought.
6.DIFF and DEA are both negative numbers, that is, when both are below the zero axis, the general trend is short market, and DIFF can be sold when it falls below DEA.
7. When the trend of DEA line deviates from the trend of K line, it is a reverse signal.
8.DEA has a high error rate in consolidating the situation, but if it cooperates with RSI and KD indicators, it can make up for the deficiency.
Relative strength index
The strength index was first used in futures trading. Later, in many chart technical analysis, it was found that the theory and practice of intensity index were extremely suitable for short-term investment in the stock market, so it was used to measure and analyze the stock price rise and fall. Foreign exchange trading is similar to futures trading and stock trading in that the rise and fall of exchange rate ultimately depends on the relationship between supply and demand. Therefore, the strength index is also widely used to analyze the foreign exchange market. Later, investors also made the calculation formula of RSI into a computer program, and the operator can get the value of RSI by inputting the exchange rate data into the computer every day. At present, both the chart analysis of Reuters and the chart analysis of Deli Finance can extract the trend chart of RSI.
Relative strength index (RSI) is one of the technical indicators. According to the strength index theory, any market price fluctuation is between 0- 100. According to the normal analysis, it is considered normal that the RSI value changes between 30 and 70. 80-90 thinks that the market is overbought, and the market price naturally faces downward adjustment. At 10-20, it is considered that the market has oversold, so the market price naturally faces stabilization and recovery. However, investors may find that sometimes the RSI is above 80, and the price of gold is still rising, so it is not reliable to judge the top only by whether the stock price is overbought by 80. So we should look for other laws to judge.
Generally speaking, technical indicators tend to deviate from the top, and RSI indicators are no exception. The top deviation of RSI indicator means that the stock price first hit a new high in the upward trend, and then the RSI indicator also hit a new high above 80, and then the stock price fell to a certain extent, and RSI also followed the downward trend of gold price.
If you need more detailed information, you can add my own button to chat.