1. MACD moving average
Moving Average Convergence Divergence (MACD), also known as Moving Average Convergence Divergence, according to the construction principle of Moving Average, smoothes the closing price of the stock price and calculates the arithmetic mean value.
There are two main USES of MACD:
Homeopathy - gold fork/dead fork combat
Be to chase after go up kill fall namely, gold fork buys when bull market, dead fork sells when bear market.
Anti - market operation - top - bottom deviation from the war
That is, to escape the top and copy the bottom, to sell short when the top diverges, and to buy long when the bottom diverges.
2. RELATIVE STRENGTH INDEX (RSI)
The relative strength index (RSI) compares the average closing price rise and the average closing price fall over a period of time to analyze the market's buying and selling intentions and strength, so as to make future market trends.
1) limited by the calculation formula, no matter how the price changes, the value of the strength index is between 0 and 100.
2) a strength index above 50 indicates a strong market, while a index below 50 indicates a weak market.
3) the strength index fluctuates between 70 and 30.When the six-day index rises to 80, it indicates that the stock market has been overbought. If it continues to rise and exceeds 90, it indicates that the warning area of serious overbought has been reached. The stock price has formed a head and is likely to reverse in a short term.
4) when the six-day strength index drops to 20, it indicates that the stock market is oversold. If it continues to drop to below 10, it indicates that the stock market is seriously oversold, and the stock price is likely to have an opportunity to stop the decline and rebound.
5) the overbought value of each type of stock is different. Before we take a buy/sell action on a stock, we must first find out the overbought/overbought level of that stock.As for the overbought/oversold level of a stock, we can refer to the stock's strength indicator record over the past 12 months.
6) when the strength index goes up but the stock price goes down, or when the strength index goes down but the stock price goes up, this situation is called "divergence".When RSI is above 70 to 80, the price breaks through the top and RSI cannot break through, forming a "bottom break". When RSI is below 30 to 20, the price breaks through the bottom and RSI cannot break the bottom, forming a "bottom break".This divergence between strength and price movements is usually a signal that the market is about to undergo a major reversal.
3. KDJ random index
The random indicator was George C.Lane initiative.It combines the strengths of momentum, strength and moving averages to measure the degree to which a share price has deviated from its normal range.
The KDJ indicator takes into account not only closing prices, but also recent highs and lows, which avoids the weakness of looking only at closing prices and ignoring the true magnitude of the wave.Random index (KDJ) is generally based on the principle of statistics, through a special period (often for 9, 9 weeks, etc.) inside out is the highest, the lowest price and the last calculation cycle and at the close of the proportion of the relationship between the three, to calculate the last calculation cycle of immature random value RSV, then according to the smooth moving average method to calculate the K value, D and J values, drawn with graphs and stock movements.
Random index (KDJ) is calculated based on the basic data of the highest, lowest and closing prices. The K, D and J values obtained are respectively a point formed on the coordinate of the index. Connecting countless such points, a complete KDJ index can reflect the trend of price fluctuation is formed.It mainly USES the real volatility of price fluctuations to reflect the strength of price movements and the phenomenon of overbought and oversold, which is a technical tool to send a buy and sell signal before the price has risen or fallen.In the design process, it mainly studies the relationship between the highest price, the lowest price and the closing price. At the same time, it also integrates some advantages of dynamic concept, strength index and moving average. Therefore, it can study and judge the market rapidly, quickly and intuitively.Because KDJ line is essentially a random fluctuation concept, it is more accurate to grasp the short-term market trend.
4. BOLLINGER BANDS -- BOLLINGER BANDS
BOLL index is a very simple and practical technical analysis index designed by American stock market analyst John brin according to the standard deviation principle in statistics.In general, the movement of share price is always around a central value (such as average line, cost, etc.) within a certain range of change, brin line indicator index is based on the above conditions, the introduction of the concept of "share price channel", its thought shares the channel width changes with the size of the stock price volatility, and stock channels and variability, it will automatically adjust with the change of stock price.Due to its flexibility, intuition and tendency, BOLL indicator has gradually become a popular indicator widely used by investors in the market.
Among many technical analysis indexes, BOLL index belongs to a special category.Most of the technical analysis indicators are constructed by quantitative method, and they do not rely on trend analysis and morphological analysis, while BOLL index is closely related to the form and trend of stock price.The concept of "stock price channel" in BOLL index is the intuitive manifestation of stock price trend theory.BOLL USES "stock price channel" to show various price levels of stock price. When stock price fluctuates very little and is in consolidation, the stock price channel Narrows, which may indicate that stock price fluctuation is in a temporary calm period.When the stock price fluctuation exceeds the upper track of the narrow stock price channel, it indicates that the extreme upward fluctuation of stock price is about to start.When share price movements move beyond the lower reaches of a narrow channel, they also signal the start of unusually violent downswings in share prices.
Investors often encounter two of the most common trading traps. One is the "buy low" trap, in which the stock price falls instead of stopping after the so-called "buy low".The second is to sell high trap, the stock sold in the so-called high point, the stock price is all the way up.Brin line using Einstein's special theory of relativity, the thought is interactive between all kinds of market, all kinds of changes between the market and the market is relative, there is no absolute, share price is relative, shares in the rail line above or below the next rail line only reflect the stock is relatively high or low, investors make investment decision must be comprehensive reference before other technical indicators, including quantity, and psychological indexes, analogy indexes, that links the market data, and so on.In a word, the stock price channel in BOLL index plays an important reference role in predicting the future trend of the market, and it is also a unique analysis method of BOLL line index.
5. CCI homeopathic indicators
Homeopathy Index is also called CCI Index, which is called Commodity Channel Index in English. It was first used for the judgment of futures market, and then used for the research and judgment of stock market, and has been widely used.And most of the single use of stock's closing price, opening price, the highest or the lowest price and invented various technical analysis indicators, CCI indicator is according to the principle of statistics, import prices and fixed price average interval during the period of the notion of a deviation degree, the emphasis on stock average absolute deviation in the stock market, the importance of the technical analysis is a unique technical analysis indicators.
Among the commonly used technical analysis indicators, CCI (homeopathic indicators) is the most peculiar one.CCI index has no limitation of operating region and varies between positive and negative infinity, but, unlike all other indexes without operating region limitation, it has a relative technical reference region: +100 and -100.According to the common idea of index analysis, the operation interval of CCI index is also divided into three categories: overbought area above +100, oversold area below -100, and oscillated area between +100 and -100. However, the technical meaning of the operation of this index in these three areas is different from the definition of overbought and oversold of other technical indexes.Above all in +100 the concussion area between - 100, this index basically does not have sense, cannot the operation that reachs share share to offer how many clear proposal, accordingly it is invalid below normal circumstance.This also reflects the characteristics of the index -- CCI index is designed specifically for extreme cases, that is, in the general normal market, CCI index will not play a role, when CCI scanning abnormal stock price fluctuations, instant instant determination, victory and defeat immediately, gambling lost must be immediately settled.
6. Average ADX trend index
The adx-average Directional Indicator is another commonly used trend Indicator.With the tendency of system (DMI) is also composed of Wells, Mr Wilder (Welles Wilder), poor use of long-short tends to change from and combined judgement, the average trend of share price movements, can reflect the share price of high and low twist, profit level, but not in a band as a result, had much signal frequency and the profit is not stable, often used to assist other indicators system operation.
ADX can't tell you where the trend is going.However, if a trend exists, ADX can measure the strength of the trend.ADX looks the same whether it's going up or down.The larger the ADX reading, the more pronounced the trend.When measuring the strength of a trend, you compare ADX readings over several days to see whether ADX is rising or falling.ADX reading increased, indicating a stronger trend;If the ADX reading drops, the trend is weaker.As the ADX curve climbs upward, the trend is stronger and should continue to grow.If the ADX curve declines, the trend begins to weaken and the likelihood of a reversal increases.As for ADX itself, it is not a good indicator because the index lags behind the price trend, so it is not suitable to operate on ADX alone.However, when combined with other indicators, ADX can confirm whether there is a trend in the market and measure the strength of the trend.
7. Momentum index
Momentum Index is also known as MTM Index. Its full English name is "Momentom Index", which is a medium - and short-term technical analysis tool specialized in studying stock price fluctuations.Momentum index aims at analyzing the speed of stock price fluctuation, and studies the acceleration, deceleration, inertia and the phenomenon of stock price changing from static to dynamic or from dynamic to static in the process of stock price fluctuation.The momentum index is based on the theory of the relationship between price and supply and demand. The increase of stock price must decrease gradually over time, the speed and force of change slow down gradually, and the trend can be reversed.And vice versa.In this way, the momentum index is used to calculate the speed of stock price fluctuations to get different signals, such as the peak of strong stock price and the trough of weak stock price. Therefore, it becomes a kind of market measurement tool favored by investors.
The momentum change of stock price in fluctuation can be reflected by the daily momentum point curve, that is, momentum line.In momentum exponential diagrams, horizontal lines represent time and vertical lines represent momentum ranges.Momentum takes 0 as the center line, that is, the static velocity zone. The upper part of the center line is the rising zone of stock price, while the lower part is the falling zone of stock price. The momentum line moves around the center line periodically according to the situation of stock price wave, so as to reflect the speed of stock price fluctuation.
8. GANN FAN Angle line
Gann Angle line (Gann Fan), also known as Gann line, is a more common technical analysis tool for domestic investors, but due to the uniqueness of this tool, some stock analysis software did not understand its reason, operators can not appreciate Gann line strong market effect, is undoubtedly a pity.Angle line is an important part of gann's theory series, which has a very intuitive analysis effect. According to the criss-cross trend line provided by Angle line, it can help the analyst to make a clear trend judgment.Therefore, the Angle line is a set of inexpensive and high-quality analysis method, any person can easily learn very little time.
On the significance of the Angle line, gann declared, "when time and price form a square, the market movement is imminent."It shows that the Angle line is not a trend line in general sense, but a unique analysis system based on the concept of two-degree space of time price.Therefore, some analysts pointed out that the Angle line was gann's greatest invention, which opened up the irreconcilable but inseparable pattern of time and price, which is even the most valuable part of technical theory from the perspective of operation.
Therefore, make gann line to have a square concept, the so-called square is also a square, with the diagonal 45 degrees as square half, it represents the relationship between time and price in equilibrium, if according to a pattern of time, price at the same time to reach this equilibrium point, the market will have a major shock.
Gann line reflects the relation between price and time in gann's theory.
The most important concept in gann's theory is the relation between gann line and price movement.
The gann line establishes time on the X-axis and price on the Y-axis. The gann line is denoted by "TxP", where T is time and P is price.
Each gann line is determined by the relation between time and price.The gann lines are drawn from the distinct vertices and bases of the figure, and they cross each other to form a relationship between the gann lines.Not only can they determine when prices will reverse, but they can also indicate where they will reverse, creating a beautiful harmony between time and price.
The basic ratio of gann line is 1:1, that is, every unit of time, the price runs one unit.In addition, there are 1/8, 2/8, 1/3, 3/8, 4/8, 5/8, 2/3, 6/8, 7/8 and so on.Each gann line has its corresponding geometric Angle.
9. SAR parabolic steering index
Stop and Reveres (SAR/The Parabolic Time/Price System) is also called Stop loss point steering."Stop", namely stop loss, stop loss meaning, this requires investors before buying and selling a certain stock, want to set a stop loss price first, in order to reduce investment risk.And this stop loss price is not always the same, it is with the price of the fluctuation of the stop loss level also want to adjust accordingly.How to not only effectively control the potential risks, but also not miss the opportunity to earn greater returns, is the goal of every investor.But the stock market is unpredictable, but in different periods of different stock movements and each are not identical, if the stop bit is set too high, can appear & sell stocks retreated during the adjustment, and sell the stock that a new uptrend, missed the opportunity to earn more profits, on the other hand, the stop bit set too low, just don't control the risk.Therefore, how to set the stop loss position accurately is the purpose of various technical analysis theories and indicators, and SAR index has its unique function in this respect.
"Reverse", namely the meaning of reversal, Reverse operation, this requires investors to set a stop loss position before deciding to invest in the stock, when the price reaches the stop loss price, investors not only want to buy the stock at the early stage to be covered, but also can be covered at the same time to Reverse short operation, in order to seek the maximization of earnings.This way in a short mechanism of securities market can be manipulated, and the domestic market of our country are not allowed to short, so investors mainly adopts two kinds of methods, one is in the share price down below the stop-loss price in a timely manner after sell their money to the sidelines, the second is when the stock price upward breakthrough SAR indicators suggest price pressure, in a timely manner to buy stocks or shares to rise.
10. Change rate index
Rate of change (ROC), ROC is a comparison between the stock price of the day and the stock price of a day before a certain number of days, and the Rate of change reflects the speed of change of the stock market.Most books refer to ROC as speed of change, rate of change, or rate of change.The literal translation from the original English text should be the rate of change.
1) ROC indicates the rate of stock price rise or fall.
If it is an upward trend and ROC is positive, and ROC is rising step by step, it means that the upward trend is accelerating. If ROC starts to level off, it means that the stock price is now rising at the same level as a few days ago.If ROC starts to fall, although the stock price is still rising, the rising force has faded.If ROC starts to extend below 0, the recent downward trend has begun to show. If ROC goes further down, the downward power is strengthening.
ROC is the relative price difference between the two ends of a stock price that shows a certain time interval.If ROC rises, the share price is higher than it was a few days ago.ROC flat, then the current stock price rise only the same as a few days ago.
ROC down, the stock price has been a few days than the rise in small.This is how ROC shows the acceleration and deceleration of the current stock trend.
Similar statements can be made for the downtrend and the ROC decline, both of which are negative.
2) the change of ROC was ahead of the change of stock price
Because of ROC's structural characteristics, ROC changes are always ahead of stock price changes, rising or falling several days ahead of the price.When the stock price is still rising, ROC may have leveled off, while when the stock price is rising, ROC may have fallen.This is also the basic basis for departure from thinking.
3) there is a certain range of ROC folding
ROC can be positive or negative, large or small, but there is basically a range of ROC changes.In other words, we can find a positive number and a negative number, making the ROC curve mostly fall within the range formed by these two Numbers, that is, smaller than this positive number and larger than that negative number.In this way, it is as if ROC were given a top/bottom boundary.These two boundaries are very useful in predicting the rise and fall of stock prices in the future.We can use these two boundaries to calculate the rising and falling heights in the future by means of inverse operation.