[Stock Market] deviation rate (BIAS) (favorites)

Deviation rate (BIAS)
The deviation rate, also known as the y value, is a technical indicator that reflects the degree of deviation between the stock price and the moving average in the fluctuation process. Its theoretical basis is: no matter whether the stock price is above or below the moving average, as long as the distance is too long, it will approach the moving average, calculate the stock price deviation from the moving average percentage to determine the time of purchase.
Calculation formula:
Closing price of the day-n-day moving average
NBIAS = --------------------------- × 100
N-day moving average
When the stock price is above the moving average, it is called the positive deviation rate, and vice versa. When the stock price shares overlap with the moving average, the deviation rate is zero. In the course of stock price increase and decrease, the deviation rate changes at both sides of the zero point repeatedly. The value has a certain predictive function for future stock price trend analysis. When the positive deviation rate exceeds a certain value, it indicates that in the short term, multiple customers make a large profit, and the possibility of making a profit is also high, showing a sell signal. When the negative deviation rate exceeds a certain value, it indicates that there is a high possibility of a short replenishment request and a purchase signal.
Sales principles:
In individual stocks, whether it is a rising market or a falling market, as long as the trend is stable, the deviation rate will fluctuate within a normal range. If it exceeds the normal value, it can be considered that the deviation rate is too high, the stock price will move closer to the moving average, and its normal fluctuation range cannot be determined due to different stock price options. However, the fluctuation range of the stock's off-peak rate can be seen in the computer chart. The other rules are roughly the same.
For the Shanghai stock index, the deviation rate is shown as follows:
The normal range of 1.5-day deviation rate fluctuation is between positive and negative 2.
2. in the continuously rising market, the deviation rate on the 5th and 10th days is above the 0-axis position, and the deviation rate on the 10th day is above the ratio on the 5th day, when the deviation rate on the fifth day is close to or slightly exceeds positive 2, the index sorts the horizontal disk or callback. During the sorting process, the deviation rate is adjusted downward on the fifth day. When it is close to or slightly lower than the 0 axis position, that is, the rebound is upward, indicating that the upward trend has not changed.
3. in the rising market, when the deviation rate on the fifth day exceeds the positive rate of 5, it can be regarded as a turning signal. At this time, we should closely watch the index changes. When the deviation rate on the fifth day deviates from the top of the index, it can be regarded as the top signal. In this case, we should wait and see again as soon as possible.
4. In the falling market, the 5-day deviation rate exceeds the negative 6, and a rebound will occur. During the rebound process, the deviation rate on the 10th day of the 5th day is under the 0-axis position, and the deviation rate on the 5th day is above the ratio on the 10th day. When the deviation rate on the 5th day exceeds the positive value of 2, the rebound will end.
5. in the falling market, the deviation rate on the 5th day greatly exceeds the normal range of the negative value, and the index deviates from the bottom of the 5-day deviation rate, the index is a new low, while the 5-day deviation rate is out of a wave-to-wave pattern, indicating that the bottom of the market is successful and can be involved in a timely manner.
For Shenzhen component index, the deviation rate is as follows:
The normal range of 1.5-day deviation rate fluctuation is between positive and negative 7.
2. in the continuous multi-headed market, the deviation rate on the 5th and 10th days is above the 0-axis position, and the deviation rate on the 10th day is above the ratio on the 5th day, when the deviation rate on the fifth day is close to or slightly exceeds positive 7, the index sorts the horizontal disk or callback. During the sorting process, the deviation rate is adjusted downward on the fifth day. When it is close to or slightly lower than the 0 axis position, that is, the rebound is upward, indicating that the upward trend has not changed.
3. in the steadily rising multi-headed market, the 5-day deviation rate fluctuates normally, indicating that the rising market is stable. If the 5-day deviation rate is greater than positive 7, it can be regarded as a turning signal, at this time, we should closely observe the stock price changes. If there is a top deviation, the index will hit a new high, and the 5-day deviation rate will go out of the form of a wave-by-wave low. It can be regarded as the header and should be taken out of the market as soon as possible.
4. In a falling market, if the deviation rate on the 5th day exceeds the negative value of 7, a rebound will occur. During the rebound process, the deviation rate on the 5th day was under the 0-axis position, and the deviation rate on the 5th day was above that on the 10th day. When the deviation rate on the fifth day exceeds 0, the rebound will end.
5. in the falling market, the deviation rate on the 5th day greatly exceeds the normal value of the negative value, and the index deviates from the bottom of the 5-day deviation rate, the index is a new low, and the 5-day deviation rate goes out of the wave-to-wave pattern, indicating that the bottom of the dashboard is successful and can be involved in a timely manner.
The above figures are only reference values. In practice, investors should determine their operating rules based on the volatility of individual stocks.