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Data:2009-12-12 2:34
William indicators overbought oversold itself is both prompt and the strength of early warning capabilities and the use of the "four-degree touch-top (bottom)" principle could also be a clear trading signal. In addition, another important feature of William indicators can be used as a complementary technical indicators to use, for supporting the other technical indicators to confirm the signal, often used in conjunction with technical indicators is the Relative Strength Index RSI and moving average smoothing differences and similarities between line of MACD.
As the RSI and William indicators are indicative of the strength characteristics of transformed, so the two can be combined to confirm the price movements or by the weak by the strong weakening of strengthening. When the RSI from the low 50's wearing the same time axis, if William indicators also wore 50 in the axis of sync, it means that the price movement has been strong from the weak region into the region, could start a wave uptrend, and vice versa. However, specific attention should be paid at this time, when the use of two kinds of technical indicators to set the parameters corresponding to the ratio should be maintained, otherwise you will generate errors. Generally W% R (5), W% R (10), W% R (20) should correspond to RSI (6), RSI (12), RSI (24), and so on. And when William indicators into overbought territory, the show price movement to reach high-risk areas, this time on the one hand with the "four-degree touch-top (bottom)" the principle of seeking a selling point, on the other hand may seek MACD signal of support, if the MACD indicator the formation of high level at this time, "Sicha", that DIF beneath MACD sell signal, it indicates that the advent of phase at the top of form, should not hesitate to throw the stock. Similarly, when William of indicators into the oversold zone operation can be reversed.
In most cases, William indicators are being used as short-term technical indicators to use. Some investors tend to prefer to target parameters of modified shorter, so that the sale of the signal appear more frequently in order to speed up the frequency of short-term operation. But this is also making cheat line greatly increased the likelihood of success, the result may be the high point of buying low and selling in the embarrassing situation. To avoid this situation, and it should be noted William indicators parameter settings. According to the specific circumstances of the domestic market, you can set the Qianlong software technical parameters Lieutenant General William Daily indicators parameter is set to 6,12,24 or 5,10,20, so that will be maintained William indicators as the characteristics of short-term trading tools, but also can take into account the medium-term trends, to avoid frequent trading and its errors.
In addition, we can note that on-line indicators and weekly indicators, in combination, to further increase the accuracy of judgments. Indicators such as the date line into overbought territory, and repeatedly hit top of that price movement is close to the short-term high. If the contour at this time are also at the same time, William indicators oversold territory, it means that the possibility of significantly lower prices peaked, there are signs of the head to build a medium-term, when the stock side is a surefire plan thrown a timely manner. On the contrary, the same day while the contour line in the indicator peaked indicators are still low, then that is only half-way up the short order, the possibility of afternoon will continue to rise, when not only do not have to rush to throw the stock, but you can take advantage of the stock callback Machine bargain hunting. Similarly, when William indicators of activities in the oversold region can reverse handle.
