Category: Money Tips Date: 2006-06-27
Williams% R is the use of indicators to measure the stock market swing points, the phenomenon of super-sale, predictable cycle of the high points or low period, which made efficient investment signals,% R = 100 - (C-Ln) / (Hn - Ln) × 100 where: C for the day closing price, Ln for the N days of low, Hn for N days, the highest price, the formula set parameters N day of the election, generally set to 14 or 20.
Application of the principle of
William's index formula and the strength index, stochastics, as the calculated values for the index fluctuated between 0 to 100, only difference is that, William smaller the value of the index, the market buying heavier the contrary, the greater its value , the market sold more dense gas. Application of William indices, the general use of the following basic rule:
(1) When the% R line 80, the market is oversold conditions, stock prices bottomed out at any time. Therefore, the 80 of the horizontal line commonly referred to as buying, investors wait for an opportunity where you can buy; on the contrary, when the% R line 20, the market is overbought condition, the trend may be about to peak, 20 of the horizontal line is called To sell the line.
(2) When the% R to climb up from the oversold area, it said that trend is likely to shift Quotes, under normal circumstances, when the% R break 50 in the axis, the market turned strong by Ruoshi City, is a buy signal; on the contrary, When the% R overbought zone from the drop down to below 50 in the axis, may confirm strong city of weakening, is to sell signals.
(3) As the stock market momentum changes, but also re-post overbought overbought, oversold, they can also be oversold, therefore, when the% R into an overbought or oversold area, and the prices are not necessarily immediately changing its stance. % R line is only to confirm the apparent shift, below the sell line or break through to buy line, side to the correct trading signals.
(4) the use of William indices are developed for Quotes, the best strength index can be used simultaneously with the verification. At the same time, when the% R line break or a break of 50 in the axis, may also be used to confirm the signal strength index is correct. Therefore, the user can be correctly applied, such as William index, play to their strength with the strength index in the development of the phenomenon of cities and overbought oversold the complementary function can be drawn on the general trend toward more precise judgments.
Evaluation
William indices belonging to research the technology stock price volatility index, in the formula design, it is more akin to the principle of random indices, both of which are from a study of stock price volatility, through an analysis of a period of time of high and low price and the closing price of the relationship between the , reflecting the strength of the market and trading momentum. The difference is that random sampling index number of days shorter, more random results, while William index slightly easier to sample the number of days missed big market, not stuck easily in the high-end. However, a strong sensitivity of the indicator, in operation, such as access to city, in its sole mark too often. Therefore, the use of the process, it is best to combine strength index, movement index together with a more balanced development of technical indicators, could result in more accurate trends for Quotes judgments.
