A detailed analysis of commonly used technical indicators collection Money Tips

Category: Money Tips Date: 2006-07-18

(A) the moving average line analysis

Moving average line is the use of statistical theory, through the principle of the average daily share price will be the average, eliminate irregular fluctuations in the number of columns, showing that the kinds of series, and used to determine the true trend of the future stock price movements.

Moving average line features:

1. Moving average line, portfolio theory

Moving average of portfolio theory is the number of days in several different moving average line was not drawn a map in the same order to a variety of different periods of the moving average line and stock price trend line arranged to become associated with the combination, and then changing trend from group combination to determine the timing of the sale.

�?shares from the bottom up, breaking the short-term moving average line, is a short-term buying opportunity.

�?shares from the bottom up, breaking through, the long-term moving average line, yes, the long-term buying opportunity.

�?price from top-down, below the short-term moving average line, the short-haul shipments signal.

�?price from top-down, below the long-term moving average line, is the long-term ship signals.

2. Golden cross and death cross -

Two different days of the moving average cross-cutting, if it is short-term moving average line from the bottom up, breaking the long-term moving average line, showing long arranged in patterns, called "golden cross" should normally be bullish market outlook; if short-term moving average line from the top-down, below the long-term moving average line, showing the form of short arrangement, saying that "death cross" should normally be bearish market outlook.

(B) The Stochastic KDJ, is the date or the most recent days by calculating the highest price, lowest price and closing price for the price volatility to reflect the extent and strength of price movements overbought oversold situation, the price has not increased or issued before the sale of the signal decreased as a technical tool.

【Description�?indicators:

Stochastic indicator is based on the price, the transaction price during the period of convergence in the vicinity of the highest bid. Prices, the transaction price convergence in the period of the lowest closing price in the vicinity; and J lines are given in the price of turnaround signal. Stochastic indicator combines the concept of momentum, strong and weak indicators and the advantages of moving average applicable to a more rapid in the short term volatility of futures products, belonging to a relatively short-term, sensitive indicators.

Rules�?【judged that:

1.K value is greater than the D value, shows the current rising trend for; K value is less than D values indicate that there is a downward trend.

2.K break up the value of D value for buy signal, J-line description breakthrough in the successful turnaround.

3.K value down below the D value of sell signals, J-line description breakthrough in the successful turnaround.

4.D value fell to 10-15 when the oversold, in order to buy the signal. J Line-turn instructions for accurate signal.

5.D value climbed to 85-90 when the super-buy, for sell signals. J Line-turn instructions for accurate signal.

6.K value fell to 20 o'clock oversold, in order to buy the signal. J Line-turn instructions for accurate signal.

7.K value rose to 80 when the super-buying, in order to sell signals. J Line-turn instructions for accurate signal.

8.K line of the tangent point of view has begun to flatten, he might be softening the precursor Quotes.

9.K, D line 75 above or 25 below the cross, and the J-line turnaround is a relatively clear buy or sell signal.

10.K, D-line with the futures price movements deviate from the trend may have reversed the opportunity on behalf of the market.

【Help�?

Benefits: K, D compared with RSI high accuracy, there is a clear point of sale there, for mastery of the short-term Quotes very accurate.

Disadvantages: Note that K, D cross deceived line, and too sensitive for the short-term operator of the reference index.

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【Description�?indicators:

(C) the similarities and differences between a smooth moving average (MACD) (Moving Average Convergence Divergence)

MACD is Geral Appel in 1979 proposed the use of a short-term (often 12 days) moving average line and the long-term (often 26 days) moving average convergence and separation between the state, to buy, sell and make time to judged that the technical indicators.

The specific formula as shown:

MACD calculation should be used when the weighted average index were calculated (DI), calculated from the value of difference (DIF), on the 9th to the calculation of deviation from the mean (DEA), columnar values (BAR), on the 12th index average ( 12, EMA), on the 26th index of average (26 EMA), on the 12th smoothing factor (L12), on the 26th smoothing factor (L26), and other basic data backup before you can calculate the MACD values. Similar to the moving average indicator, the difference is that of exponential smoothing operation processing. Out by calculating the change in the smoothness of fast moving average (12 days) and changes in the slower moving average smoothing (26 days), the value of the difference between the two referred to as "difference from the value (DIF)". The difference is worth a day away from the connection to the deviation from the curve, with the change in deviation from the curve Quotes are negative when the next move in the X axis. Mainly based on two exponential smoothing moving line difference (DEA) and signal (DIF) and by difference from the value and DEA made the difference between the values from the histogram to study the sale of the timing signal.

Rules�?【judged that:

1, when the DIF from the bottom up break MACD, form a golden cross, both wearing white DIF on the formation of a yellow MACD cross. At the same time BAR (green bars) reduced, in order to buy signal.

2, when the DIF from the bottom up break MACD, the formation of cross-death, both wearing white DIF under the formation of a yellow MACD cross. At the same time BAR (Hongzhu line) reduced, in order to sell signals.

3, top departure from the

When the stock price index increased Zhu Bo, while the DIF and the MACD is not a synchronous rise, but fell Zhu Bo, and stock prices deviate from the formation of the top. Indicates that stock prices will fall. If the DIF, appeared twice by top-down through the MACD, the formation of two cross-death, then the stock will be dropped.

4, at the end of departure from the

When the stock price index down Zhu Bo, while the DIF and the MACD is not a synchronous decline, but Zhu Bo rise, and stock prices deviate from the formation of the end, indicating that shares will rise. If the DIF, appeared twice by bottom-up through the MACD, the formation of two golden cross, then the stock will rise significantly.

5, MACD trend is mainly used for medium and long term trend up or down to judge, when the stock price index fluctuations in the disk is not obvious when the Board or, MACD trading signals are less evident. When the share price fluctuated in a short time is larger, because of MACD moving very slowly, so it will not produce immediate changes in the stock trading signals.

6, high-grade cross fell down twice; low cross rose up twice.

【Help�?

Benefits:

MACD moving average lines can get rid of the frequent false signals flaws, ensure the greatest role of the moving average line. Main trend of uncertainty into the market to avoid the unnecessary number of times.

Disadvantages:

1. Can not rally its highest point and lowest point of sell signal issued buy signals.

2. Plate Authority, Quotes from top to bottom Xi Pan, a high failure rate, but it can cope with RSI and the KD line for intraday short-term operation.

【Description�?indicators:

(D) Relative Strength Index (RSI) to the date of the closing price the previous day closing price of the difference between the balance of power as a result of long-short market, by calculating the total strength of the buyer market share in the total strength of buyer-seller ratio, and changes in trends, to measure the strength of the market's current fluctuation trends, predict future price movements, as well as the entry point for the sale of an effective analytical tool. Values in the 0-100.

Rules�?【judged that:

1. When the RSI is higher than 80 showed us that when the price into the overbought zone, will gradually form a head; when the RSI below 20 showed us that when the price into the oversold zone, may form at the bottom.

2. When the RSI trend of rising futures prices fell a trend of departure from the usually can determine the forthcoming major reversal for the market; and vice versa.

3.RSI above 50 for the increase in market trends, when the RSI break from bottom to top 50, it can intervene long on. On the contrary, when the RSI from the top-down below 50, it can sell the hands of the contract.

4. Plate Authority, which can be used RSI> 50, when they sold the hands of the contract; RSI <50, when buying a premium.

5. When the short-term RSI from the next break up a long-term RSI, said the signs of a strong trend has taken a turn may consider buying. If the short-term RSI break-down by the long-term RSI, then the trend of weakening, and are advised to consider selling.

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6.RSI Ke Yi head and shoulders, head and shoulders bottom, triangular shape, support, resistance, and so the signal shape for the sale of point.

【Help�?

Benefits:

1. Responsive, high sensitivity, can often lead changes in the prices reflect market trends. This feature is suitable for strong short-term speculative operations.

2. On the market, "buying" and "selling air" has a unique display feature, which can show the current market and can perceive the potential market in advance of "the market outlook," the possibility of movement, and more accurate.

Disadvantages: difficult to define overbought oversold, high or low RSI regional RSI zone Jianxian blunt and lose its role; plate bureaux, RSI buy and sell signals occur frequently.

【Description�?indicators:

(E) William indicators referred to as WMS% R, or W% R, reflecting the current commodity prices, the price volatility in a certain period in the position and thus to analyze the short-term market trading momentum of the technical indicators can be used to determine cycle period the high points and low, to introduce effective being reckless investment signals, and out of time to market, its index value ranging from 0 to 100.

Rules�?【judged that:

1.W% R value of the smaller markets, buying on behalf of the more serious, when the W% R between 0-20, they are in an overbought condition, and this cycle will peak, prices may peak at any time down. 20 The horizontal line is called "sell line."

2.W% R value the greater the gas sold in the market the more severe, when the W% R ranged from 80-100, it will indicate an oversold condition, and this will be to arrive at the bottom of the cycle, prices will soon hit its bottom back shells. 80 The horizontal line is called "buy-line."

3. When the price into the overbought zone is not necessarily immediately its peak, the upward trend likely to continue for some time, this means the price is still in a strong line up to sell below the turn signal is the first one ; when prices into the oversold zone, have such problems.

4. When prices upward from overbought zone early, saying only that the price trends shift, if the l axis break, the market began to turn strong, you can wait for an opportunity to recover revenue; when prices come down from the overbought zone and below the central axis, we confirmed that the market has begun to weaken.

【Help�?

Benefits:

1. In the analysis of short-term movements, the indicator in determining overbought and oversold areas has its uniqueness;

2. Cycle easy to determine. The choice of a specific cycle parameters, according to the cycle of commodity price changes to one-half of each cycle indicators for the base period for calculating the number of days.

Disadvantages:

A strong sensitivity of this metric, the relative cheat line more. To make up for shortcomings of the index above, during the operation if the combination of relatively stable relative strength index technical indicator to determine its effect will be better.

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