Use of MACD top deviation and bottom deviation in practice (detailed diagram)

MACD indicators are a technical indicator that I like very much, he is also rare among the thousands of technical indicators in the stock market. using only one technical indicator can select the technical indicators of highly operational individual stocks; in addition, the advantage of this indicator is that it can roughly understand the hot spot of the market, and distinguish that individual stock based on the slight changes of this indicator is expected to become a hot spot.

Next I will record the usage of some of the indicators I have collected online.

Today we will talk about the top deviation and bottom deviation.

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.

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.

How can we determine the deviation of MACD?

The usage of technical indicators is similar to three:

Collaboration-synchronization of stock prices and indicators;

Crossover-long, short-term golden forks and dead forks;

Deviation-the stock price and the indicator are inconsistent. The stock price trend goes up, but the indicator goes down or down. The stock price trend goes down, but the indicator goes up or down.

The top deviation of my MACD is:

After a rise in the stock price, the top deviation of MACD refers to whether the stock price is equal to or higher than the previous high stock price (macro view, rough view, and stock price trend) the DIFF in the MACD indicator is not synchronized with the price, but is low or flat (in detail, it is more operable than the value size). In the cdl indicator, DIFF turns green from red. The price is to look at the trend, not necessarily according to what is the highest, lowest, closing price, is to look at a general look, and the following DIFF is to compare with the previous peak size, so it should be accurate.

The usage is not to look at the above price, but to look at the highest point of the DIFF of MACD, as long as the new peak is not as high as before, even if it is deviated, there is generally at least 15% drop down.

Here we should note that the MACD deviation mentioned in the textbook is the ratio of the stock price to the macd in the macd indicator, and here I am comparing the share price to the DIFF OF THE MACD indicator.

In turn, the MACD is deviated from the base. Share price innovation is low, DIFF is no longer low in innovation (there should be a low point in front), the next day of this low point is the bottom deviation point, please note: this low point is formed by the increase of the next day, and the base deviation point is a reference point for purchase.

To make full use of this function, we will not look at the above stock price but DIFF. The day when innovation is no longer low and this low price is the baseline deviation.

Now let's see how accurate it is! If you want to get a ticket, you can check that MACD is in this situation. Don't make a mistake immediately, at least wait until it calls back more than 15% yuan. If you have a ticket, you can pick it up at the low level on the next day.

The above is the principle. Generally, the top deviation is more accurate. If you see the escape, there will be at least 15% of the decline below. The Escape error is nothing more than a little profit. The bottom deviation is only for reference, it cannot be guaranteed that there must be a 5% renewal head. If it is bought, it only has a stop loss.

Next is a recent top deviation chart:

The following is a full chart of deviations to deepen understanding.

Someone asked: why is the baseline deviation of in the full graph? Why does E point deviate from c d point?

DIFF changes direction on and 11, and DIFF changes from green to red. It is determined from the previous day's position, and a low position appears. 2 leads to a higher low position than 1, 7 leads to a higher low position than 4, and 11 leads to a higher low position than 9. SO 2, 7, and 11 are the bottom deviation points.

11 was a little stubborn. Even now, I almost went up, but the stock price rose by more than 3%. J only went up on that day. I can neither see nor do it.

E leads to a new high (the day before E) higher than the previous C, D is low, E is the top deviation.

This is what I set. If this is the case, you may not be sure.

Let's look at a clear top deviation chart.

What parameters are used for MACD?

I use standard parameters 26,12, 9. This is also to simplify, so as to remain unchanged.

Some people may think that 20, 6, and 5 are good, so don't change. Some people may think that the compatibility line of MACD is good in MACD, in short, do not change easily when you practice something that you think is good unless you encounter problems in practice.

Because the MACD crossover is not used, the response is faster. For short-term use, 60 Minutes, daily, and weekly.

It is best not to run the stock price below E40. If you want to do it, you should make the MACD ups and downs, and the bottom deviation is obvious. In this case, the bottom deviation from the purchase cannot be too high, so you can stop the losses at any time, if you cannot see it clearly, do not do it.