Category: Money tips Release Date: 2006-04-16
BBI is also called long-short index, is the number of days by several different moving average calculated using the weighted average out of a moving average of the composite indicator, BBI index itself is a moving average MA for common indicators of an improvement, no matter need to constantly introduce new improvements in order to progress in the development of technical specifications is no exception. BBI calculation formula:
BBI = (3 day average +6 Average Daily Rate +12 Day +24 Day average price average price) ÷ 4 from a long-short index formula can be seen that the value of long-short index of the number of days each contains a different part of the moving average weights This is a different number of days moving average then the average values, which respectively represent the average of each line of "good." In fact, the long-short index is a moving average principle of the special product of long-short divide has played a role. Application of Law:
1, the stock price in the high-priced areas to close down below the long-short line for sell signals.
2, the stock closing price in the low-cost areas to break up long-short line for buy signal.
3, long-short index increasing by bottom-up, stock prices in the long-short line, they said, indicating that strong bull trend can continue holding.
4, long-short index decreasing from top-down, stock prices below the long-short lines, indicating strong potential short, the general should not be bought.
BBI is an MA on the nature of an improvement, so similar to the MA has some shortcomings:
1, indicator signal lag, often occur when the stock is near a short head, BBI only appeared buy signal, stock prices close to short-term bottom, BBI only appeared sell signal.
2, indicator signals frequent phenomenon, especially in the trend are uncertain, this phenomenon is even more serious.
3, in the moving average indicators of MA, the set up more than average, sub-growth, medium and short-term, and simultaneously use each other than the right, very effectively compensate for shortcomings of a single average. The BBI index is only set up an average, only played the role of short-term long-short divide.
Improvement programs:
Set a long-term BBI indicators and the original BBI used in conjunction with the new BBI calculation formula:
1, calculate an average price of individual stocks traded: average = Stock turnover turnover turnover of individual stocks ÷
2, we calculate the price of 6, 18, 54 day, 162 day moving average, exponential smoothing lines, such as 6, EMA formula:
6, EMA = 2 × turnover average + (6-1) × on a cycle of 6 EMA value ÷ (6 +1)
Other exponential smoothing moving average line, such as the 18 EMA, 54 day EMA, 162 day EMA method of calculation and so on, not repeat them. If you use software to calculate it would be too simple, as long as writing EMA CLOSE î–?6, EMA î—?CLOSE î–?18 ... ... on it.
