What is MACD index? What are the skills of using MACD indicators?
The stock market is changing rapidly. Every minute someone is making money, and every minute someone is losing money. I once heard an old shareholder tell me that how many people make money in the stock market, how many people are losing money. This kind of leverage principle seems to be the mystery of the stock market. Even if you lose money in the stock market, you still feel pain and happiness in the lock up. Looking at stocks every day seems to be to find something to do. However, we can't be locked up in front of happiness forever. After all, it is also the hard-earned money of investors. In the stock market, mastering knowledge is essential. Observe the trend chart, observe the indicators and select stocks. But many new and old investors find that the most difficult and complicated thing in the stock market is not to choose stocks, but to choose the right time.
Some people say that the stock market is like a battlefield, and it is necessary to master certain knowledge and skills. Knowledge and skills are like weapons for investors on the battlefield. If they don't take their own weapons, they will be doomed to failure. Therefore, it is necessary for shareholders to learn how to use indicators and how to use them.
As far as the stock investors are concerned, MACD is not a common tool for them to understand. So, what is the MACD indicator? What are the skills of using MACD indicators? What should I pay attention to when using MACD? For these investors are generally concerned about the problem, the small editor to give a detailed answer, how to choose the right time from the MACD index.
First of all, what does the MACD index mean?
MACD index is called exponential smooth similarity and difference average, or moving average mutual verification (deviation). It is developed from the double index moving average, which subtracts the slow index moving average from the fast index moving average. The meaning of MACD is basically the same as the double moving average, but it is more convenient to read. In brief, MACD calculates the fast moving average value and the slow moving average value first, and uses these two values as the difference value data between them. When MACD index changes from negative to positive, it is a buying signal; when MACD index changes from positive to negative, it is a signal to sell; when MACD changes from a large angle, it means that the gap between the fast moving average and the slow moving average is rapidly widening, which represents a major trend change in the market. The analysis method was first proposed by Gerald Appel in 1979. MACD calculates two weighted moving average lines with different speeds according to the daily closing price. It is a very common technical analysis method to determine the trading opportunity by measuring the difference between the two average lines.
Secondly, the application skills of MACD index.
MACD index is a trend index based on the construction principle of the moving average and smoothing the closing price of the price. Generally speaking, it consists of two parts, namely dif positive and negative difference and DEA average. Among them, DIF is the core and DEA is only auxiliary. In the specific application, investors can pay attention to a few tips. That is: when dif crosses MACD upward, it is a buy signal; otherwise, it is a sell signal; when dif crosses MACD downward for two consecutive times, it will form a large drop; when dif crosses MACD upward for two consecutive times, it will form a larger increase. If dif deviates from the stock price, its credibility is higher than the price.
MACD index actual use:
Therefore, MACD index is formed by the combination of two lines and one column. The fast line is dif, the slow line is DEA, and the histogram is MACD. In various types of investment, there are the following methods for investors' reference:
1. When DIF and MACD are both greater than 0 (that is, they are above the zero line in the graph) and move upward, it is generally indicated that the market is in a long market, and you can buy open positions or long positions;
2. When DIF and MACD are both less than 0 (i.e. graphically, they are below the zero line) and move downward, it is generally indicated that the market is in a short position, and you can sell open positions or wait and see.
3. When DIF and MACD are both greater than 0 (i.e., they are above the zero line in the graph) but both move downward, it is generally indicated that the market is in the decline stage, and can sell and open positions and wait and see;
4. When DIF and MACD are both less than 0 (i.e. graphically, they are below the zero line), but when they move upward, it generally means that the market is about to rise and the stock will rise. You can buy open positions or long positions.
Finally, the use of MACD indicators should be noted.
When the range of rise and fall is particularly large in one or two days, MACD index will be too late to respond, because the movement of MACD is quite moderate, and there will be a certain time difference between the movement of the comparative market. Therefore, once the market rises and falls sharply, MACD will not immediately generate a signal. So for investors, when this happens, the MACD index is useless. In addition, the weekly K-line MACD index has a high accuracy in judging the medium and long-term turning points, so it can be used as their preferred reference index for medium and long-term investors.
What investors need to pay attention to is that when DIF and DEA are both positive and dif breaks through DEA upward, this is a buying signal reference; when DIF and DEA are both negative and dif falls below DEA, it is a selling signal reference; when dif line deviates from K line, it is a possible reversal signal of the market; When macds change from a positive number to a negative number, or from a negative number to a positive number, this is not a trading signal because they are lagging behind the market.