What is the trend leader strong stock selection of indicators Money Tips

Category: Money tips Release Date: 2007-02-04

Also known as a strong trend of the leading shares of the selection of indicators, the basic principle is that through the relationship between the changes in individual stocks and the broader market to find strong stocks.

Leading indicators are divided into price and quantity of leading indicators, comparing the daily individual stock price and market index has reached the percentage of connections for the Y1, compare the daily number of stocks traded hands on the tape assembly fighting hand to hand to derive the percentage of connections for the Y2; in the Based on this, also can calculate the 5, 10, on average, smoothing leading indicators.

Application of the principle of

1) If the daily Y1 advance from low to high (ie, the trend was up), compared with a strong stocks that rose faster than broader market, falling slower than the broader market, there may be big to take care of, you can buy bargain-hunting.

2) If Y1 gradually lower, for the weak stocks that rose slower than broader market, falling faster than the broader market, indicating that no one take care of stock, buying the possibility of post-lock-large, should stay away from.

3) If Y1 start up after falling a height, it can be determined once the confirmation reached the bottom of the same if the Y1 start up after the lower back, once the confirmation peaked and should sell as soon as possible.

4) If Y1 5-day moving average line to wear on the 10th, then constitute the position signal, may be temporarily pubic wait and see, whereas if the 5 moving average beneath 10, MA, constitutes lighten up the signal, and are advised throw.

5) Y2 is Y1 effective supplement, if Y1 rise, Y2 at the same time goes up, they show that rising values increase in volume, can be early intervention, if Y1 down, Y2 rise, then fall in price increase in volume, there are those who take the initiative to sell, should sell, , if Y1 rise, Y2 fell, indicating a lack of volume with the rise may be a temporary wait and see, if Y1 down, Y2 has also declined, indicating decreased fatigue, not sell into, but also a temporary wait.