Smoothing, similarities, and differences average-macd

Smoothing, similarities, and differences average-macd

Macd indicators, also known as exponential smoothing, similarities and differences, and moving averages, were created by Gerald apple, it is a technical analysis tool used to judge the stock trading opportunity and track the stock price operation trend.

Section 1 principles and calculation methods of macd indicators

I. Principles of macd indicators

Based on the construction principle of the moving average, the macd index smooth the closing price of the stock price and calculates the arithmetic average value. It is a kind of trend indicator.
Macd indicators are a sign of using fast (short-term) and slow (long-term) moving averages and their aggregation and separation to perform double smooth operations. The macd developed based on the moving average principle removes the defect of frequent false signals from the moving average, and retains the effect of the moving average, the macd index has the characteristics of moving average trend, stability, stability, and so on. It is a technical analysis index used to judge the timing of stock trading and pre-test the stock price rise/fall.
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Macd indicators are mainly determined based on the relationship between EMA, DIF and DEA (or macd and DEM, the Analysis and Determination of the moving average line connected by DIF and DEA, and the bar chart drawn by DIF minus the DEM value, etc, main stock market technical analysis indicators that predict the short-term trend of stock price. Among them, DIF is the core and DEA is the auxiliary. DIF is the difference between the fast moving average (ema1) and the slow moving average (ema2. Bar Charts use the contraction of red and green columns in the stock market technical software to judge the market.

Ii. macd indicator calculation method

In terms of application, macd calculates the fast moving average (ema1) and slow moving average (ema2), and uses these two values as the measure (fast and slow line) the basis for the difference (DIF) between them, and then calculate the smoothing moving average DEA (also called macd and DEM) line of the N-period of DIF.

Take the ema1 parameter as the 12-day, the ema2 parameter as the 26-day, and the DIF parameter as the 9-Day as an example to look at the macd calculation process.

1. Calculate the moving average value (EMA)

The formula for the EMA on the 12th is

Ema (12) = EMA (12) x 11/13 + today's closing price X 2/13

The formula of EMA on the 26th is

Ema (26) = EMA (26) x 25/27 + today's closing price X 2/27

2. Calculate the deviation (DIF)

DIF = today's EMA (12)-today's EMA (26)

3. Calculate the 9-day EMA of dif

The 9-day EMA is calculated based on the deviation value, that is, the average deviation value, which is the requested macd value. To avoid confusion with the original indicator name, this value is also known as DEA or Dem.

Today's DEA (macd) = the previous day's DEA x 8/10 + today's DIF x 2/10

The calculated DIF and DEA values are both positive and negative values.

Theoretically, in the continuous increase, the EMA line on the 12th is above the EMA line on the 26th, and the positive deviation (+ DIF) increases. On the contrary, in the decline, the deviation value may change to negative (-DIF), and it will become larger and larger. When the market starts to improve, the positive and negative deviation value will be reduced. The macd is based on the sales signal by using the cross signal of the positive and negative deviation (± DIF) and the N-day average (n-day EMA, that is to say, we analyze the sales signal again with the crossover principle of fast and slow moving lines. In addition, macd indicators in the stock market software also has a secondary indicator-Bar = 2 × (DIF-DEA ), we can still use the bar columnar line to determine the buying and selling time.

The difference DIF and the mean deviation DEA are the main tools for judging macd. The calculation method is cumbersome. Because these values are automatically completed by the computer in the stock market analysis software, investors only need to understand the calculation process, the more important thing is to master its judgment function. In addition, as with the calculation of other indicators, the selected calculation cycle is different, macd indicators include daily macd indicators, weekly macd indicators, monthly macd indicators, and minute macd indicators. The daily and weekly macd indicators are often used for stock market research. Although their values are different during calculation, the basic calculation method is the same.

In practice, connecting the DIF and DEA (macd) of each point will form two fast (short-term) and slow (long-term) lines moving up and down on the zero axis, this is the macd graph.

Section 2 General criteria for judging macd indicators

Macd indicators are well-known analysis tools for the vast majority of investors in the market. However, when using them, investors may feel that the accuracy, effectiveness, and operability of macd indicators have many blank points, sometimes it is found that the analysis methods and techniques of macd indicators learned from books are used to determine the stock trend. The conclusions drawn are often quite different from the actual trend, the opposite result may even be obtained. The main reason for this is that the vast majority of the books on stock market Technical Analysis on macd are limited to the surface, and only the general analysis principles and methods of macd are introduced, however, some specific meanings and analysis skills of macd analysis indicators are rarely introduced. This section describes the Special analysis principles and functions of macd based on the general analysis and determination techniques and analysis methods of macd indicators.

The general criteria of macd indicators are mainly centered on the two moving averages of fast and slow speed and the status of red and green bars and their forms. The general analysis methods mainly include the DIF and macd values and their locations, the intersection of DIF and macd, the contraction of the red column and the form of macd.

1. DIF and macd values and line positions

1. When DIF and macd are both greater than 0 (that is, they are graphically indicated to be above the zero line) and move up, it is generally indicated that the stock market is in a multi-headed market and can be bought or held in stock;

2. When DIF and macd are both smaller than 0 (that is, they are graphically indicated to be below the zero line) and move downward, it is generally indicated that the stock market is in a short market, you can sell stocks or wait and see.

3. When DIF and macd are both greater than 0 (that is, they are displayed in graphs above the zero line) but all move downward, the general expression is that the stock market is in a low tide stage and the stock will fall, stocks can be sold and watched;

4. When DIF and macd are both smaller than 0 (that is, they are shown in the figure below the zero line) but move up, it is generally said that the market is about to start, the stock will rise, you can buy stocks or hold shares to rise.

Ii. Intersection of DIF and macd

1. When DIF and macd are both above the zero line, and DIF breaks through macd, it indicates that the stock market is in a strong position and the stock price will rise again. You can add code to buy shares or hold shares to rise, this is a form of "golden cross" of macd indicators.

2. When DIF and macd are both below the zero line, and DIF breaks through macd, it indicates that the stock market is about to grow stronger, and the stock price decline has been exhausted and will stop falling upwards. You can start to buy or hold shares, this is another form of "golden crossover" for macd indicators.

3. When DIF and macd are both above the zero line while DIF breaks through macd, it indicates that the stock market is about to change from strong to weak, and the stock price will drop sharply, at this time, you should sell most of the shares instead of buying them. This is a form of "Death crossover" of macd indicators.

4. When DIF and macd are both above the zero line and DIF breaks through macd, it indicates that the stock market will enter the extremely weak market again, and the share price will fall, so you can sell or wait and see, this is another form of "Death crossover" for macd indicators.

3. bar chart analysis in macd indicators

In computer analysis software of the stock market (such as Qian Long software), we usually use the DIF value minus the DEA (macd, dem) value to draw a column chart, which is represented by the red column and the green column, the red column indicates a positive value, and the green column indicates a negative value. It is intuitive, clear, practical, and reliable to analyze the market with a red-green column.

1. When the red Column continues to expand, it indicates that the stock market is in a bull market and the stock price will continue to rise. In this case, the stock should be held up or the stock should be bought in the short-term, and the sale should be considered until the red Column cannot be enlarged.
2. When the green Column continues to expand, it indicates that the stock market is in a bear market and the stock price will continue to fall. At this time, it is necessary to hold the currency to watch or sell the stock, A small amount of stock purchases can be considered until the green column begins to shrink.

3. When the red column begins to shrink, it indicates that the bull market in the stock market is about to end (or enter the adjustment period), and the stock price will fall sharply. At this time, it is necessary to sell most of the shares instead of buying them.

4. When the green column begins to contract, it indicates that the stock market's slump is about to end, and the stock price will stop falling up (or enter the consolidation). At this time, we can establish a small number of long-term strategic positions instead of selling stocks easily.

5. When the red column begins to disappear and the green column begins to release, this is one of the signals of stock market conversion, indicating that the stock market's rising market (or high consolidation market) is about to end, and the stock price will begin to fall faster, in this case, you should start to sell most of the shares instead of buying them.

6. When the green column begins to disappear and the red column begins to release, this is also one of the signals of stock market conversion, indicating that the stock market's falling market (or low-position consolidation) has ended, the stock price will begin to increase rapidly. At this time, you should begin to add code to buy stocks or hold shares to rise.

Section 3 Special Analysis Method of macd

I. Morphological rules

1. m head, W base, and other Forms

Macd indicators can also be used to determine the market conditions in the form of macd images.

When the macd red column or green Column Structure of the Double top bottom (m head and W bottom), three top bottom and other forms, it can also be analyzed and determined based on the analysis and determination methods of morphological theories. For example:

2. Top deviation and bottom Deviation

The deviation between the macd indicator is that the trend of the macd indicator is exactly the opposite of that of the K-line chart. Macd indicators have two kinds of deviations: Top deviation and bottom deviation.

(1) Top Deviation

When the stock trend on the K-line chart is one-to-one peak, the stock price continues to rise, while the chart on the macd indicator chart is shown as a trend of a red column, which is one-to-one peak, that is, when the high point of the stock price is higher than the previous high point, and the high point of the macd indicator is lower than the previous high point of the indicator, this is the top Deviation Phenomenon. The top deviation is generally a signal that the stock price is about to reverse in the high position, indicating that the stock price is about to fall in the short term and is a signal to sell the stock.

(2) Bottom Deviation

The bottom deviation usually occurs in the low position of the stock price. When the stock price on the K-line chart, the stock price is still falling, while the macd indicator chart forms a graph of the green column, the trend is higher than the bottom, that is, when the low point of the stock price is lower than the previous low point, but the low point of the indicator is higher than the previous low point, this is called the bottom deviation. The bottom deviation is generally a signal indicating that the stock price may reverse up at a low position, indicating that the stock price may rebound up in the short term, which is a signal of short-term stock purchases.

In practice, the deviation of the macd index is generally relatively reliable in a strong market. When the stock price is at a high price, the stock price is about to reverse as long as there is a deviation, when the stock price is low, it is generally confirmed only after repeated deviations. Therefore, the accuracy of macd's top deviation is higher than the bottom deviation, which investors should pay attention.
3. trend line and pressure line

Ii. analysis cycle rules

The longer the green column interval, the larger the intensity of future growth and the longer the time

The longer the red column is maintained, the longer the space and strength of the future decline.

Iii. analysis parameter modification principles

4. Moving Average first rule

Section 4 practical skills of macd indicators

The practical skills of macd indicators are mainly focused on the macd indicators, such as the "Golden Cross", "Dead cross", and the red and green column lines in macd indicators. The following uses the macd indicators (, 52) on analytics' software to reveal the trading and wait-and-see functions of macd indicators. (Note: macd indicators are the same in the selection and usage of metrics in Qianlong software and analytics software ).

I. Purchase Signal

(1) Analysis of the intersection between the DIF line and the macd line

1. The weak "Golden Cross" in the areas below the 0-Value Line"

When the DIF line and macd line in the macd indicator run down for a long time in the area below the 0 value line, when the DIF line starts to run horizontally or slowly hook up close to the macd line, if the DIF line goes above the macd line, this is the first "golden crossover" of macd indicators ". It indicates that the stock price has been falling for a long period of time, and after the low position is sorted out, after a large round of decline, the stock price will begin to rebound upwards, which is a signal of short-term purchases. For this kind of "golden crossover", it only indicates that the rebound may occur, not that the decline trend of the stock has ended, the stock price may soon end and fall again. Therefore, investors should be cautious when setting a stop-loss price. (7-1.

2. Strong "Golden Cross" in areas near the 0-Value Line"

When both the DIF line and macd line in the macd indicator are running in the area near the 0-Value Line, if the DIF line breaks through the macd line under the macd line, from bottom to top, this is the second Golden crossover of macd indicators ". It indicates that after a period of rise and a high or low position, the stock price will start to rise a large round, which is a medium-and long-term buying signal. It may indicate that a considerable rise in the stock price will soon begin, which is a good time for investors to buy stocks. Investors should treat this kind of "Golden Cross" differently.
Tip 1 when the stock price rose slightly at the bottom, and after a short period of horizontal sorting, then the stock price rose upwards, and the macd indicator appeared such a golden cross, is a long-line purchase signal. At this time, investors can establish a warehouse on a long-term low. (7-2-1.

Tip 2 when the stock price starts from the bottom, there has been a round of rising prices, and after a long period of time on the way, the median archive sorting, then, when the stock price is turned up again and macd indicators show this kind of fork, It is a midline purchase signal. (7-2-2.

3. The general "Golden Cross" of regions above the 0-Value Line"

When both the DIF line and macd line in the macd indicator are running in the area above the 0-Value Line, if the DIF line is adjusted below the macd line, it will break through the macd line from bottom to top, this is the second Golden crossover of macd indicators ". It indicates that after a period of high-position rollback, a new round of growth starts, which is the second buy signal. At this time, aggressive investors can add code to buy stocks in a short period, and aggressive investors can continue to hold shares to rise. (7-3.

(2) columnar Line Analysis

1. Red Column

The release of the red columnar line indicates that the multi-headed power in the market is stronger than the short-selling power, and the stock price will begin to rise in a new round, which is a clear buying signal. Investors should also analyze this buying signal from three aspects.

(1) When the DIF and macd lines are running in areas above the 0-Value Line, it indicates that the stock market is in a multi-headed market and the stock price will continue to rise. When the macd indicator is put back on the 0-value online side for a short period of time, when the red column line is released again, investors can continue to hold more shares, and empty warehouse buyers can buy at a low price. (7-4-1.

(2) When the DIF and macd lines are running in areas below the 0-Value Line, it indicates that the stock market is in a short market and the stock price will continue to fall to the bottom. When the green bar lines in the macd indicator run slowly after a long period of time, if the red column shows that the stock price may rebound, but the trend of medium-and long-term decline has not completely changed. At this time, radical investors can buy a small number of stocks in the short-term on the premise of setting a stop loss point; Aggressive investors can continue to hold the currency. (7-4-2.

(3) When both the DIF and macd lines run in the areas below the 0-value line, but the two lines pass through a "golden cross" at the low level, when its operation direction starts to go up at the same time and is getting closer to the 0-Value Line, if the red column line starts to release (especially the second release) at this time, it indicates that the stock price has been sorted for a long time, the downward trend has ended, and the stock price will start a new round of Rising Market Price Driven by a large number of buyers. This is also a good time for investors to buy stocks in the long-term. At this time, investors should promptly buy shares or hold shares to rise. (7-4-3.

(3) Dual-basis analysis of macd indicators

When the DIF line and macd line in the macd indicator run for a long time near the 0 value line, the green column line forms a bottom-to-bottom structure with a higher base height, it indicates that the long-term downward trend of the stock price may end, and the stock price will begin a new round of medium-and long-term upward trend with the help of the transaction volume. At this time, investors can begin to build warehouses in batches at low prices. (7-5.

Ii. Sales Signal

(1) Analysis of the intersection between the DIF line and the macd line

1. Strong "Death crossover" in regions above the 0-Value Line"

When the DIF line and macd line in the macd indicator run up for a long time while away from the 0-Value Line in the area and move up from the 0-value line at the same time, when the DIF line starts to run horizontally or slowly hooks down to the macd line, if the DIF line then breaks down the macd line, this is the first "Death crossover" of the macd indicator ". It indicates that the stock price has been rising for a long period of time. After the stock price is sorted out at a high level, a large decline will begin. For this "Death crossover", it indicates that the stock price's medium-and long-term rise has ended. Another fall trend of the stock may have begun, and the stock price may fall for a period of time, therefore, investors should be especially cautious about the "death crossover" of macd indicators, and should sell all or most of the stocks at an on-demand high, especially those stocks that have risen too high in the early stage. See figure (7-6.

2. Weak "Death crossover" in areas below the 0-Value Line"

When the DIF line and macd line in the macd indicator run for a long period of time away from the areas below the 0-Value Line, as the DIF line trend is ahead of the macd line, when the DIF line starts to slowly adjust its head down to the macd line again, if the DIF line then breaks down the macd line, this is another "Death crossover" of the macd indicator ". It indicates that after the rebound of the stock price for a period of time on the way to a long-term decline, a large round of decline will start again, and the stock price will fall again, which is a signal of short-term sales. For this "Death crossover", it means that the short-term rebound on the way to the decline ends, the long-term trend of the stock price is still bearish, investors should sell the remaining shares or hold the currency wait-and-see. (7-7.

(2) columnar Line Analysis

1. Red Column

The contraction of the red columnar line indicates that the multi-headed force in the market is stronger than the short-selling force, and the stock price will start a new round of decline, which is a clear selling signal. Investors should also analyze this selling signal from three aspects.

(1) When the DIF and macd lines are running in areas above the 0-Value Line, once the red column line cannot be enlarged and gradually shrunk, it indicates that the stock price is nearing its end, the stock price will be adjusted in the short term, but it is still in a strong market. In this case, stable investors can temporarily gain a short-term profit, and make decisions after the stock price operation trend is clear. Aggressive investors can continue to hold shares and wait and see. (7-8-1.

(2) When the DIF and macd lines are running in the area near the 0-Value Line, once the red column line disappears, it indicates that the stock price has ended and the market for a medium-and long-term decline is about to expand. For this situation, investors should clear up and exit the market as soon as possible, especially when the DIF and macd lines are running down at the same time. (7-8-2.

(3) When the DIF and macd lines are running in areas below the 0-value line, if the red column lines in the macd indicator are released for a short time and then contracted again, it indicates that the short-term rebound on the way to the long-term decline of the stock price will end, and the empty side is still powerful. Investors should also leave the market as soon as possible. (7-8-3.

(3) Dual-top Analysis of macd indicators

When the DIF line and macd line in the macd indicator run for a long period of time above the 0-Value Line, the red column line forms a double-top shape with a top-down ratio to a bottom-up value, it indicates that the long-term upward trend of the stock price may end, and the stock price will begin a round of new medium-and long-term downward movements. At this time, investors should sell their shares on an increase in time. (7-9.

Iii. Signals of pending shareholding increase

(1) Analysis of the Operation direction of DIF and macd lines

1. When the DIF line and macd line run upwards simultaneously in areas above the 0-Value Line, it indicates that the strength of multiple parties is stronger than that of the empty side, and the stock price is in a rising market, as long as the DIF line does not break down the macd line, investors can continue to hold shares to rise or to buy at a low price. (7-10.

2. When the DIF and macd lines are running in areas above the 0-value line, but the DIF line is ahead of the macd line, if the DIF line starts to run downward and gradually moves closer to the macd line, it indicates that the power of the Multi-empty network tends to be balanced, and the stock price is facing the pressure of short-term rollback. In this case, investors should be careful and treat each other differently. As long as the DIF line does not effectively break down the macd line, it can still hold shares to rise until the DIF line breaks down the macd line effectively and runs down at the same time, it should be sold in time. (7-11.

3. When the DIF and macd lines are in the areas below the 0-value line but are running up at the same time, it indicates that the power of multiple parties is accumulating slowly, and the stock price is slowly recovering from the market. In this case, aggressive investors can start to absorb small numbers of low-level items, hold shares in the short-term to rise, and make a rebound.

(2) columnar Line Analysis

1. When the DIF line and macd line are running in a region above the 0-value line, if the red column line in the macd indicator still increases the pulling length, it indicates that the strength of multiple parties is stronger than that of the empty side, the stock price is in a strong upward trend, and investors should firmly hold their shares to stay up. (7-13.

2. When the DIF and macd lines are in the areas below the 0-value line, if the red bars in the macd indicator start to be released and gradually enlarged, and the macd and DIF lines both start to run upwards, it indicates that the multi-headed forces are growing slowly, aggressive investors can build a warehouse and hold shares in the middle and long term to rise. (7-14.

3. When the DIF and macd lines are running in areas above the 0-value line, if the green bar of the macd indicator is gradually reduced after a short period of median operation, it indicates that the power of multiple parties has been re-accumulated, and the stock price will stabilize and attack again after a small high level. Investors should also hold shares in the short-term to rise. (7-15.

Iv. Currency holding signals

(1) Analysis of the Operation direction of DIF and macd lines

1. When the DIF and macd lines are located in areas above the 0-Value Line, but both of them are running downward, it indicates that the power of the blank party begins to increase and the stock price rise may end, investors should hold the currency to watch and do not blindly buy stocks. Especially for those stocks that have recently risen too high. (7-16.

2. When the DIF and macd lines are in the areas below the 0-value line and their operation direction is also downward, it indicates that the air force is too strong and the stock price continues to fall, investors should firmly hold on to the coin and try not to rebound the market. (7-17.

(2) columnar Line Analysis

1. When the DIF and macd lines are running in areas above the 0-value line, if the red column lines in the macd indicator start to contract and gradually disappear, it indicates that the power of multiple parties may fail, the stock price is reversed at any time. At this time, investors should focus on holding coins. (7-18.

2. When the DIF line and macd line are running in a region above the 0-value line, if the green bar line in the macd indicator begins to release and gradually increases the pulling length, it indicates that the power of multiple parties has been exhausted, the strength of the air is getting stronger, and the stock price has been falling. At this time, investors should firmly hold on to the coin. When the DIF and macd lines are running in a region above the 0-value line, if the green bar lines in the macd indicator increase downward in turn, it indicates that the air force is too strong and the stock price will continue to fall, at this time, investors should also firmly hold on to the coin. (7-19.

3. When the DIF and macd lines are running in areas below the 0-value line, if the stock price shrinks and disappears again after a round of small rebound, it indicates that the power of the air is still strong, and the stock price is reversed again. At this time, investors should also hold the currency to wait and see.