Combining the concept of momentum, strength index and the advantages of moving average, this paper mainly studies the relationship between the price and the closing price in the calculation process, reflecting the strength of the price trend and the phenomenon of overbought and oversold. It is also sensitive to short-term overbought and oversold forecasts in the market. The appearance of the dead fork beacon, after a long-term plunge, is close to the bottom area, even if it has not reached the lowest point, or the dead fork letter marks the shock period after the bottom reaches the lowest point. Once there are more meaningful buying instructions such as dead-end navigation marks, buy and open positions.
analyse
According to a classic K-line chart or a commonly used indicator, the conclusion may not be valid, and the specific analysis should be different.
The application of indicators is often a statistical analysis or observation of data changes over a period of time, but there may be operational factors in the data during this period, or the changes caused by fundamentals and news in a period of time have affected the trend as a whole, which may affect the accuracy of indicators, as does the K-line chart.
Refer to the above content: Baidu Encyclopedia -K-line diagram