# 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.