DMI index is a set of technical analysis tools that Oscar Wilde considered more successful and practical. Although its calculation
The process is complicated, but the application of technical analysis software can make investors save the complicated calculation process and concentrate on it.
Only by grasping the true meaning revealed by the index can we understand its unique function of judging the market.
Different from other technical indicators, the kinetic energy of DMI indicators is mainly to identify market trends. In application
At that time, the judgment of DMI index mainly focused on two aspects. On the one hand, it analyzes the rising index +DI and the decline.
The relationship between the decline index DI and the average trend index ADX is the trend and turning point of the market.
Judgment of potential characteristics. Among them, the trend relationship between +DI﹣ and DI curve is the signal to judge whether it can be bought or sold.
ADX is a signal to judge the future market development trend.
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First, judge the function of rising index +DI and falling index DI.
1, when the stock price trend develops upwards and +DI﹣ breaks through DI from below, it inDIcates that there is a new market.
The entry of multiple buyers is a buying signal. If ADX rises with it, it indicates that the stock price may rise more strongly.
2. When the stock price trend goes down and DI breaks through +DI from top to bottom, it indicates that the market is short.
The strength is increasing. In order to sell the signal, if ADX is accompanied by a decline, it indicates that the decline will intensify.
3. When the stock price maintains a certain rising or falling market, the signal of +DI ~ and DI's cross breakthrough is more accurate.
However, when the stock price maintains consolidation, the buying and selling signals sent by +DI+ and DI shall be deemed invalid.
Second, the function of judging the average trend index ADX
ADX is the average value of dynamic value DX, which is calculated according to the difference and comparison of two values +di- and di.
Therefore, the use of ADX indicators will more effectively judge the development trend of the market.
1, judge the market trend
When the market trend develops upwards, the ADX value will increase continuously. Therefore, when the ADX value is higher than the previous day, it may be
To judge that the current market is still maintaining the original upward trend, that is, the stock price will continue to rise, if +DI and
The synchronous rise of DI indicates that the current upward trend will be very strong.
When the market trend goes down, the ADX value will continue to decrease. Therefore, when the ADX value is lower than the previous day, it can be
Judging that the current market still maintains the original downward trend, that is, the stock price will continue to fall, if +DI﹣ and.
The simultaneous decline in direct investment means that the current downward trend will continue.
2. Judge whether the market is consolidating.
When the market situation is slightly sideways in a certain region, the ADX value will decrease. When the ADX value drops.
When it is lower than 20, it can be judged that the market is cowhide consolidation, rising or falling when it runs in a narrow lateral range.
Uncertainty, investors should mainly wait and see, and can't buy and sell stocks according to the cross signal with Di.
3. Judge whether the market is turning.
When the ADX value turns from rising to falling at a high point, it indicates that the market is about to reverse. ADX in the rising trend changed from rising to high point.
Falling, indicating that the rally is coming to an end; The ADX value in the downtrend falls from a high level, indicating that the downtrend may stop.
Section 3 Special Analysis Methods of DMI Indicators
The general analysis method of DMI index is mainly aimed at the relationship between+DI ~, di and ADX.
In most stock market technical analysis software, the special judgment function of DMI index mainly revolves around the +DI line.
-(white line), DI line (yellow line), ADX line (red line) and ADXR line (green line).
The relationship between them, the modification of DMI index analysis parameters and the principle of moving average priority.
All right. Among them, the +DI line is represented by PDI﹣-line in some software, indicating the rising direction line; Di Hangshi
It is expressed by MDI, which means descending direction line.
The principle of intersection of the first and fourth lines
1, when the +DI line is lower than the ADX line, ADXR﹣-line and DI line at the same time (especially lower than 50 lines).
), indicating that the market is in a weak market, the downward trend of the stock market has not changed, and the stock price may be
In case of decline, investors should wait and see with money or sell stocks on rallies, and cannot buy stocks easily. This is DMI.
The focus of index judgment.
2. When both the +DI line and the DI line are below 50, if the +DI line quickly breaks through the DI line, it indicates that there is a new one.
The main force has entered the market, and the stock price will rise sharply in the short term. If accompanied by a large number of transactions, the market will be more certain.
Upward, investors should buy stocks quickly in the short term.
3. When the +DI line breaks through the DI line from top to bottom (that is, the DI line breaks through the +DI line from bottom to top), it is not.
In the position of +DI and DI, it shows that there are new short positions coming into the market, and the stock price is falling, so investors should sell short-term.
Sell stocks or wait and see with money.
4. When the +DI line, DI line, ADX line and ADXR line are twisted together below 50 lines at the same time, it is narrow.
The lateral movement indicates that the market is in a state of turmoil and the stock price is in a state of lateral consolidation. At this time, investors should take
Hold the money and wait and see.
5. When +DI line, ADX line and ADXR line are lower than 50 lines at the same time, all three lines are.
The rapid upward deviation shows that the market sentiment is strong, the stock price is on the rise, and investors can buy on dips.
-or increase its shareholding. (At this point, because the DI line is a downward direction line, its response to the upward trend is invalid, so it is not.
Think about it).
6. For bull stocks, ADX turned down above 50, only fell back to 40-60, and then
Turn around and climb up again, and the stock price will go out of sideways during this period. As ADX picks up again,
The stock price has gone up again, which is a sign that the stock price has gone up. This often happens to some cattle that have risen sharply.
In the stock market, DMI index only provides a reference for the upcoming upward trend. Actually,
We must combine the moving average system with the moving average.
Section 4 Practical Skills of DMI Indicators
The practical skills of DMI index mainly focus on the four curves of PDI, MDI, ADX and ADXR of DMI index.
And the position and running direction of PDI curve (note: analysis software
PDI curve and MDI curve are +DI curve and DI curve on Qianlong and other software. The following is an analysis.
Taking DMI index with daily parameter of (42,72) in household software as an example, this paper reveals the trading and wait-and-see of DMI index.
Function. (Note: The 42-day index parameter of Qianlong Software corresponds to this parameter in analyst software, and its users
The law is roughly the same).
First, the trading function
1, when the four curves of PDI, MDI, ADX and ADXR of DMI index are in the narrow range around 20.
Narrow integration in the field. If the PDI curve continuously breaks through MDI, ADX and ADXR curves, at the same time, the stock price
When it also breaks through the medium-and long-term moving average, it shows that the bull market is relatively strong and the stock price is short-term.
It will enter a strong pull-up stage, which is a buying signal issued by DMI indicators. As shown in the figure (8–1).
2. When the four curves of PDI, MDI, ADX and ADXR of DMI index are in the region of 20-40.
If PDI curve falls below ADX curve and ADXR curve one after another, investors should pay close attention to it.
Will the Italian market reverse its downward trend? Once the PDI curve falls below the MDI curve again, the stock price will suddenly fall.
Breaking through the medium-and long-term moving average means that the main short-selling force in the market is relatively strong, and the stock price will fall in the short term. this is
Selling signal from DMI indicator. As shown in Figure (8–2).
Second, the function of holding shares and holding money
The PDI curve in 1, DMI index has been in these three curves when it breaks through MDI, ADX and ADXR respectively.
Online operation, at the same time, the stock price also rose on the basis of the medium and long-term moving average, indicating that the bullish power of the market is still there.
If you have an advantage, the stock price will rise, which is an obvious DMI indicator shareholding signal, as long as the PDI curve does not.
If it falls below any one of these three curves, investors can resolutely hold shares to rise. As shown in Figure (8–3)
As shown in the figure.
2. After the PDI curve in 2.DMI index breaks through MDI, ADX and ADXR respectively, if after a period of time,
During the high consolidation, the PDI curve fell below the ADX curve, but it was supported at ADXR and turned around again.
Going up, but also gaining support near the medium-term moving average, shows that the market is still strong and the stock price will rise.
This is also the shareholding signal of DMI indicator, and investors can also hold shares in the short term. As shown in Figure (8–4).
3. When the PDI curve in DMI index falls below MDI, ADX and ADXR, if the PDI curve keeps moving.
The line is below these three lines, moving horizontally or downwards in the area below 20, and the stock price is also in the medium and long term.
When the periodic moving average suppresses the downward trend, it means that the short-selling power in the market has an absolute advantage and the stock price will continue to fall, which
For the DMI indicator, this is an obvious signal to hold money, as long as the PDI curve does not break through any of these three curves.
In any case, investors should firmly hold the currency and wait and see. As shown in Figure (8–5).
4, when the DMI index when the PDI curve in the DMI index falls below MDI, ADX, ADXR, if PDI
The curve has been running below these three lines, and when the stock price is still suppressed by the medium and long-term moving average, it means the market.
The short-selling power of the market is still strong, and the stock price will fall. This is a signal to hold money for DMI indicators. As long as DMI
The curves have not all broken through these three curves, and investors mainly wait and see with money.