Category: Money tips Release Date: 2006-03-10
Teng down Index (A · D · Line), is a stock up or down every day of the calculation and observation Number of objects in order to understand the stock rise and fall of popularity to detect the general trend is a strong internal momentum or the weak, for the judgments the future direction of stock market technical indicators.
1. Method of calculating the daily closing price higher minus the closing price of shares Number of Number of shares down (no Change excluding) after the cumulative value of t ADL (t) = Σ (up down Number of Number of a) i = 1 start date for the ADL (1), the current date for the ADL (t).
2. Teng down Index and the use of the principle stock index is similar to the general trend of the movement both of which are reflected in and trends, not individual stocks up or down to provide signals, but because of stock price index under certain circumstances, subject to the right of the value of large stocks only when these stocks boom and the crash only occurs when the stock price index are likely to overreact, thus provide investors with false information, Teng off the index, you can make up for this kind of a disadvantage. Since Teng index and stock index down the relationship between the relatively close and watch the two plans should be linked to a common stone. Under normal circumstances, stock indices, and or, Teng off the index also rose, or both down, you can rise or fall to confirm. Should the stock price index moving, but Teng-off index of large transverse, or both anti-turbulence in China, can not be cross-checked against the general trend shows instability, can not rush into the market. Specifically, the following six circumstances.
(1) The stock price index continued to rise, Teng-off index also rose, stock prices will likely continue to rise.
(2) The stock price index continued to fall, Teng drop index also fell, stock prices will likely continue to decline.
(3) The stock index rose, while the Tang fell down, stock prices may fall again.
(4) stock indices down, while Teng-off index rose, the share price may rebound.
(5) The stock market is in bull market, Teng down index on the rise, during a sudden fall sharply if the phenomenon, followed promptly turned away up to a new high point, indicates the situation may be further new highs.
(6) The stock market is in bear market, ADL show a downward trend, during which if the sudden rise in the phenomenon, and then back again, fall break was originally created by low, then the other produced a new downtrend.
3. Why is judged stock index and the index of following Teng down a relationship? Because the index is based on stock prices and equity to be calculated sample policy, so that makes the high price and large capitalization stocks (typically mainstream stocks, rise and fall in the index a significant proportion of computing, while Teng down to each of the stock index are as the stock market a molecule, the combination of analysis, we can see that the stock market. Generally speaking, if the bull trend, the trend must be increased to maintain the focus, the focus of the so-called mainstream stocks, when the mainstream stocks rose to minor in order to maintain medium to long term confidence in the long fight real families, while the remaining shares were taken up when the pace Lun Zhang, increased the pace will be very stable. If the K-line rise and decline in ADL is to remind you that the momentum of rise in the broader market has been inclined to an ethnic flavor, while the rally is not uniform is a good thing, usually in a row such a departure from the phenomenon, are the top trend correction trillion. On the contrary, in the short of the stock market where, although the K line is still closed black, but the ADL has been turned on, on behalf of the long main point of attack attempts to enhance the expansion of the opposite, since most of the stocks rebounded, and the broader market stabilized and should not be far behind! ADL index trend and the trend of the majority of similar effect; and thus can also be used analyzing the trend lines and patterns.
