Category: Money Tips Date: 2007-06-01
Teng down Index and Change ratio is to assist the broader market trend to determine the strength of an excellent indicator of Teng drop index is based on each stock, according to Change for the calculation of the shares traded that day there were a few up a few flat to plus or minus the cumulative number of up; Change ratio, also known as regression-type Teng off index is calculated formula for the (R) = N Number of days the stock moving up together / N Number of days the stock moved down together, the. This is the traditional tape-assisted method of analysis, of course, we can also look at innovation, with a similar volume to friends Dan You discriminant analysis and long-short power, following the traditional indicators index Change Teng-off ratios are presented below:
Teng down Index (ADL)
1. Index Description:
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.
The index is based on the general stock and equity to be calculated, so that makes the high price and large capitalization stocks (typically mainstream shares), fluctuations 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 in a small back in order to maintain long-term confidence in the long fight real families, while the remaining shares were taken by the Lun Zhang up the pace when the pace of increase 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 biased towards a particular ethnic flavor, while the rally is not uniform is a good thing, usually in a row such a departure from the phenomenon, are the general trend correction the top 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 also should not be long time. Trend with the trend of the majority of ADL index has a similar effect, and thus the trend lines and patterns can also be judged.
2. The use of principles:
Teng drop index and 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, with only occur when these stocks boom and crash, the stock price index 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. 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: The stock price index continued to rise, Teng-off index also rose, stock prices will likely continue to rise; stock index continued to fall, Teng drop index also fell, stock prices will likely continue to decline; stock index rose, while the Teng-off index fell, stock prices may fall again; stock indices down, while Teng-off index, stock prices may rise; the stock market is in bull market, Teng down index on the rise, during a sudden fall sharply if the phenomenon, and then immediately he turned up again to a new high point, then the situation may be further cited a record high; the stock market is in bear markets, 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 another section of the new generate downtrend.
Change Ratio (ADR)
1. Indicators Note:
Change rate of regression of Teng fall, also known index is within a certain period of house price increases in the number of shares, and stocks fell at home to do a number of statistics derived a ratio. The theory is based on "pendulum principle", because the stock market if the supply and demand are the two extremes of the pendulum position, when the supply is large will have the effect of extremes meet, then swing to the needs of the direction of pull is stronger, and vice versa.
2. The use of the principle: When the Change Ratio (R) is greater than 1.5, it said that the long-term stock price rise, there is the phenomenon of excessive overbought the stock may fall again. When the Change through the rate of (R) is less than 0.5, it said that the long-term stock price decline, there is the phenomenon of excessive oversold the stock may rebound or a rebound. When the Change Ratio (R) in the jumping up and down between 1.5 and 0.5 that the stock price up or down in normal conditions, there is no special overbought or oversold. When the Change Ratio (R) of 2 above or below 0.3, the stock market or in most of the first-stage large short position in the market, there is a serious phenomenon of overbought or oversold. In addition to access to most of the first stock market or expand Quotes of the initial rise in the second paragraph, Change ratio of 2.0 or above have the opportunity to appear in absolute figures, the sale of the remaining sub-rising Quotes ultra 1.5, that is a selling point, and the bull market lower 0.5 yuan at the phenomenon of very few of the selling points is excellent. Change, if the declining ratio of less than 0.75, usually show short-term buying opportunity. In the early bear market, if reduced to below 0.75, usually suggesting a rebound opportunity for mid-level, but in the end of bear market, 10 Change ratio dropped to 0.5 below, in order to buy time. On the general trend, the Change ratio of the first warning role, particularly in the short-term rally or a correction, the more lead than the graphic signs appear. If the ratio of graphics and Change into the divergence phenomenon, then the trend will soon reverse.
