Category: Money tips Release Date: 2006-04-24
1. A deviation rate is derived from a principle of moving average technical indicators, and its function is to measure fluctuations in the share price moving average process with the degree of deviation occurs, so as to arrive at the sharp price fluctuations due to deviation from the trend caused by the moving average may be The correction and rebound. A deviation was divided into positive and negative, when the share price above the moving average, is positive; when the share price below the moving average when the negative; when the share price is identical with the moving average, is zero.
2. Deviate from the rate of basic judged principle is: If the stock price too far away from the moving average, are not last too long, but will quickly re-convergence of average:
(1) Generally speaking, in the weak market, the rate of 5 deviate from the "six ultra-buying phenomenon is time to sell. When it reached -6 below the oversold situation, is a buying opportunity.
(2) In a strong market, 5, a deviation from the rate of "8:00 to overbought, when it reaches -3 oversold when it is time to buy.
(3) The rise in the trend, there will be many times higher prices, but can be a positive deviation from the previous high point appears thrown. In the trend of falling, there will be many low-cost, can be a negative deviation from the previous low point of purchase.
(4) The board of plus or minus deviation from the hard disk to determine which should be a comprehensive analysis of analyzing other technical indicators.
(5) The trend of rise in case of negative deviation from the rate, you can take advantage of declines to buy.
(6) The general trend is a deviation from a drop in the rate case, you can take advantage of recovery in high throw.
