What is the EMV index and how to grasp the stock buying point through it?

Do stock, easy to use a lot of technical indicators, but commonly used on those a few, the following small to tell you, what is the EMV index, through it how to grasp the stock buy point?

EMV index is the abbreviation of simple fluctuation index. The index includes two curves, EMV line with fast fluctuation speed and maemv line with gentle fluctuation, and the latter is the moving average line of the former.
EMV index is made according to the principle of matching trading volume and stock price. If less trading volume can promote the stock price to rise, the EMV value will increase; on the contrary, if the stock price falls with less trading volume, the EMV value will decrease. In addition, if the stock price does not rise or fall, or when the stock price rises and falls with large trading volume, the value of EMV will tend to zero.
According to the change of sentiment and trading volume, EMV index constitutes a complete cycle of stock price. The index can help investors to analyze the sentiment situation and change process in the market. It enables investors to buy stocks at the beginning of the popularity gathering and sell stocks when the popularity reaches the maximum.
Calculation method:
① A = (the highest price of the stock price of the day + the lowest price of the stock price of the same day) × 2; b = (the highest price of the previous day + the lowest price of the previous day) × 2; C = the highest price of the day - the lowest price of the current day;
② EM = (a-b) × C △ trading volume of the day;
③ EMV = sum of EM on day n;
④ Maemv = M-day moving average of EMV;
⑤ The parameter n is 14 and M is 9.
Application rules:
① When the EMV line is below the zero axis, it indicates that the trend is weak; when the EMV line is above the zero axis, the trend is strong;
② When EMV line breaks through zero axis, buy stocks; when EMV line breaks through zero axis, sell shares;
③ When the EMV index line rises, it means that the stock price rises in a large scale, and it is normal to appear in the rising market; when the EMV index line decreases, it means that the stock price shrinks back, which is more normal in the stock price falling market.
Buy some analysis:
① Buy when index line breaks through zero axis
In the process of stock price callback, especially after a long period of decline, due to the continuous shrinking of market sentiment, the trading volume gradually decreases. The EMV line also continued to fall. Until the stock price falls to a reasonable support range, the bottom buying order makes the trading volume enlarge again, so the EMV index bottoms out and rebounds. When the index has the original zero axis gradually close to zero axis, it indicates that many investors in the market have successfully reversed the decline of stock price, and the market began to reverse. When the EMV index breaks through the zero axis, it indicates that the stock price has completely reversed. Stock prices began to rise, investors can actively buy stocks at this time.
In general, the EMV index line is above the zero axis, and once the indicator line breaks through the zero axis, it shows that the strong rising market is unfolding, and the short-term can be actively bought. Investors in the purchase of stocks, must maintain a short-term operational thinking, must not be used to choose long-term investment stocks. The lower the index line bottoms out, the stronger the bullish signal of this pattern.
② Index deviates from the bottom of stock price to buy individual stocks
When the stock price falls for a period of time, and repeatedly hits new lows, the EMV index does not appear synchronous, but forms a trend of bottom to bottom higher, at this time, the index deviates from the stock price. Deviation means that with the decline of stock price, trading volume is also gradually enlarged. This is a sign of funds entering the market, indicating that the stock price is about to bottom out and rebound. Therefore, investors can actively buy stocks when EMV line breaks through zero axis upward.
It can also be seen from the above figure that when the EMV index breaks through the zero axis, the stock price often has a large increase. Therefore, for the radical investors, they should buy stocks after the departure form is determined. In addition, the lower the position of the EMV line formed by the bottom deviation pattern, the stronger the bullish signal of the pattern.
When investors buy stocks according to the index, they can make a comprehensive analysis by combining with other technical analysis indexes.
        

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