Long-short ratio index, a term of stock observation trading, is a comprehensive index after weighted average of moving averages of different numbers, which belongs to moving average index. Generally, four moving averages such as 3rd, 6th,12nd and 24th are selected. When using EMA, investors often have different preferences for the choice of parameter values, and long and short indicators just solve the rationality problem of short-term EMA.
The long-short ratio index has two main functions:
1, found the main dish washing.
Some of the main washing methods are time-sharing washing, some are K-line washing, and there are other washing methods. For the first two, we can find the long-short contrast in time.
The dishwashing mentioned here must be in the process of rising, if it is in the process of falling, it is difficult to find. In the process of rising, a single investment of 20 will wash away the investors who are not determined. This time is the time for funds to enter the market.
2, bargain-hunting when oversold.
Individual stocks continued to fall. If the four lines return to zero, they will enter the arena on the day when the four lines return to zero. Because some stocks may plummet for several days in a row, and the four lines will return to zero. If they enter the stadium at zero, they will be trapped. So you only come in when zero disappears. When you rebound to the white line to 100, lighten your position, so that you can grab the rebound.