Principle: Use the relative position of the current stock price in the recent stock price distribution to predict the possible trend reversal.

Algorithm: Find the RSV (Immature Random Value) of each trading day.

RSV= (closing price-lowest price in recent n days)/(highest price in recent n days-

Lowest price in recent n days) × 100

K line: m 1 RSV moving average; D-line: K value of M2 moving average.

Parameter: n, M 1, M2 days, generally 9, 3, 3.

Usage:

1.D & gt80, overbought; D & lt20, oversold.

2. The K-line breaks through the D-line and buys the signal; K line falls below D line, selling signal.

3. The intersection of K-line and D-line is only valid when it is above 70 and below 30.

4.KD index is not suitable for stocks with small circulation and inactive trading;

5.KD index is extremely accurate for large-cap stocks and popular large-cap stocks.

MACD indicator:

Smma converges and diverges.

Principle:

MACD (Convergence and Divergence of Moving Average), whose Chinese name is Smooth Similarities and Differences Moving Average, was first published by Gerald Appel in System and Prediction. It mainly uses two short-term and long-term smooth averages to calculate the difference between them as the basis for judging market transactions.

Algorithm:

Difference between short-term and long-term smma of DIFF line closing price.

M-day index smma of DEA line difference line

The DIFFerence between MACD line diff line and DEA line, color column line

Parameters: SHORT (short), LONG (long), m days, generally12,26,9.

Usage:

1.DIFF and DEA are both positive numbers, and DIFF breaks through DEA and buys the signal.

2.DIFF and DEA are both negative numbers. DIFF falls below DEA and sells the signal.

3. number three. DEA line deviates from k line, and the market reverses signal.

4. analyze the MACD column line, turn positive to negative, and sell the signal; From negative to positive, buy signal. Red, buying signal.