MACD, BOLL, KDJ Three combination of precision grasp the trend and trading!

Source: Internet
Author: User
Tags stock prices

Look first, is the Bollinger bands 3 tracks, the other is the stock price movement

Figure 1

Stock prices, which operate between the upper and lower Bollinger bands. Precisely, this is illogical, not the first track, and then the stock price in accordance with the track movement. Because the track is changing at the same time as the stock price. However, the price fluctuation range is between the upper and lower tracks. So, if you go to 5, or 13, out of orbit, you'll return to orbit.

But the stock goes to 1, and then what? 2, 3, 4, which option will be selected? Of course, the mid-rail look, is 3, which is the result of drawing convenience. In reality, there is no right side of the track, because the stock price has not yet appeared, so the track should not be counted. So, which way does 2,3,4 choose? This depends on the MACD, the same period of the MACD

In, the white line is commonly known as the fast line, the yellow line is the slow line. White line turn down or yellow line to turn down or red column to shorten or green column elongation, is the price of the fall signal, and vice versa is the signal to rise.

In Figure 1 of the Boll Line chart, although the stock price will be subject to 3 tracks, but the stock price is not only hit the track to turn around, but in the middle of the 2 track, and the mid-rail, but also do not know whether to let the stock turn, the middle rail is sometimes supported, sometimes suppressed. MACD, can give further answers:

When the MACD signals a sell, the probability of the stock price falling is very large, that is, in the middle of the track to turn. Conversely, when the MACD sends a buy signal, the stock price increases the probability is very big, also is in the middle of the orbit to turn around

MACD, there will be a number of selling points: Red column shortening, white line down, white line dead fork Yellow Line, green column elongation, Yellow line down ... In which selling point, the price change? In which selling point, start selling it?

The longer the period of the candlestick, the more the use of the first appearance of the selling point. The month candlestick, uses the first selling point, the red column shortens, the day candlestick, uses after the selling point, the Yellow Line falls. This is because, in the long cycle, and then use the back of the selling point, is very late, the price difference is very large, even from selling points, into a buy

Now the new problem: with the same period of MACD, estimate the stock price in the Boll line Track changes, then use what, predict the MACD in the appearance of buying points? Especially in the month cycle of such a chart, such as MACD issued a selling point, even the earliest selling point (red column shortened), it is too late.

For example, the white line of the MACD, go to 1 position, then how to go? 2, 3, 4 which route do you choose?

The solution is as follows:

See a shorter period of MACD. Look at the cycle of the month, that depends on the cycle of the day, then see the daily cycle of

Look at the kdj of the same cycle. Because the KDJ can enlarge the oscillation, anticipate whether MACD appears the selling point in advance

1, look at the same cycle of KDJ

KDJ Indicator Brief Description:

0 is the middle, the upper and lower limit is usually 0~100

The purple is the J line, the fastest.

Yellow is the candle, the slowest speed

White line, it's the D line.

3 lines, usually in the range of shocks, higher than 80 or less than 20 o'clock, need to pay attention to, now the price change is very large, may have to turn around

Buying and selling points: more simple than MACD: purple under yellow (or white), dead fork, sell. Purple on yellow (or white), Gold fork, buy

It should be emphasized that: this indicator is a shock, the curve of the stock price movement, with 3 lines, is not the same. Because the oscillation is not only related to amplitude, but also related to time. Never take the line of KDJ as the trend line of the stock price. Even MACD will appear divergence, let alone KDJ, kdj appear low, but the stock price is not low, are very normal situation

Kdj effect: Through the KDJ, the size of the K value, as well as the fork die, predict whether the MACD appears red column reduction, green column elongation

So, how do you predict KDJ? If the kdj,k line after more than 80 must immediately fall back to Die fork, after less than 20 must immediately rise to the Gold fork, then just focus on the value of J, very simple. That's not the case. Just as the stock price does not necessarily change direction on the Bollinger bands, KDJ may not turn around in the 2 positions of the 20,80.

The best way to predict KDJ is to focus on the kdj of the different cycles: the short-period yellow line, which can predict the trend of the Purple Line in the long period. Judging from this, the trend of the long period is to continue, or also follow the change of the short period (in time, if the trend is changed, must be a short period of the first death fork, long period after the death fork)

2, see a shorter period of MACD

In addition to the KDJ of the same period, the MACD can be predicted with a shorter period of MACD, and the long-period of the divergence is predicted. 2, see a shorter period of MACD

In different periods, the relationship between MACD is similar to KDJ. Short-period white line = mid-period Yellow line = long-period column

Sum up:

Stock price fluctuates between the upper and lower Bollinger bands

The stock price exceeds the bollinger bands, is lower than the lower rail, immediately callback, need to sell

When you encounter 3 tracks, you may change the trend, and you may change the trend when you have not encountered a track.

View the MACD point of sale in the same period, to a certain extent, to predict the stock price trend

View the short period of the MACD, to a certain extent, to predict the long-period MACD point of purchase selling points

View the kdj of the same period, to some extent, predict the MACD buy point buy point

View short-cycle kdj, to some extent, predict long-period KDJ

Below, a brief description of the relationship between long and short periods

The same indicator, in different periods, are issued to buy points (or selling point), then strengthen its effect, similar wave resonance strengthening

Different indicators, in the same cycle, are issued to buy points (or selling point), then strengthen

Different indicators, under the same cycle, contradict each other, the situation is as follows:

The same indicator, which contradicts each other under different periods, is as follows:

KDJ: Short period, Yellow line movement, can predict long-period Purple Line trend. Short period Yellow line fluctuation, the reaction in the long period, is the Purple Line fine-tuning, if the long period of fine-tuning has not been to the degree of Death Fork Gold fork, short period of fluctuation end, began to reverse movement, the short period is exactly the same as long period direction, long period indicator end fine-tuning, continue along the original direction. If the long-period indicator in fine-tuning, immediately gold fork or dead fork, short cycle also continue to make it fine-tuning, there are 2 cases: either cross failure, long period of strength, fine-tuning end, short cycle indicator passivation, continue to operate along the long cycle direction, this probability is very large. Either because the environment is not good, small adjustment to large adjustment, short-term adjustment to long-range adjustment, long-period indicators of the total gold fork or dead fork, fine-tuning change, direction change, change to the same as the short period indicator. In short, long-period indicators are powerful, usually in their direction. But for security reasons, you can wait a while to confirm that the fork is a success or failure, the long-period indicator re-confirm the direction, and then trade

MACD: A short period of yellow line, indicating a long period of white line

Attached: Common misconceptions about indicators

Kdj

J-Value (Purple Line) low ratio good. In fact, is not, especially low, said very bear, completely fell, also means that will continue to fall, in the low passivation. Conversely, it is not the higher the more dangerous, if the special bull market, has been high-passivation

Three lines, on behalf of the stock price fluctuation, the stock price is new and low, the indicators are also high lows. Not really. The indicator simply indicates a strong volatility (time, amplitude) such as stock price rise, period adjustment, and then continue to rise. The indicator line, which can be adjusted to a low, is lower than when the stock price starts

Macd

The lower the white line, the better. A similar idea to KDJ, in fact, is not. The middle of the 0-axis horizontal line, is the CBBC boundary, white lines under the 0 axis, even if the gold fork, is not as good as the Gold Fork on the 0 axis. The 0-axis Gold fork usually means a weak market and is likely to rebound. Yellow Line suppression white line, gold fork failure probability of large

The green pillar starts to buy, because the stock price is low, it is more expensive than the red pillar and can be cheaper. Not really, the same reason. Especially when the white line yellow line <0 axis, the green column shrinks, usually bounces. If the white line >0 axis, the green column narrowing usually indicates that the adjustment in the rally is over and will continue to rise. column, is to predict whether the white line deviates from the Yellow Line

In different periods, we should look at different points of purchase and selling point. Indeed, in the month K, if you look at the Yellow line direction, already very late, if it is a bear market, that is the opposite, does not mean that the rally began, but it means the rebound is over. In the month K, it is best to look at white lines, or pillars. Similarly, in the day K cycle, you can see the white line, and even the yellow Line

White line Yellow Line, indicating the direction of the stock price. Not really. The MACD line, which does not indicate a trend in the stock direction, only represents the change in stock price, that is, it is similar to acceleration rather than speed. If the previous decline is very large, even if the white line of the yellow line to go higher, also means that the decrease in decline, does not mean to rise, so sometimes see divergence. Still, most of the time, stocks can be predicted, but not after the plunge.

Recently, a number of peak lines of green pillar, some recent red pillar peak connection, indicating the direction of stock prices. Not really, most of the time. MACD indicator, the column than the white line yellow line, more prone to divergence, so, can hardly use the column peak connection, forecast stocks.

MACD, BOLL, KDJ Three combination of precision grasp the trend and trading!

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