MACD classic usage Keep in mind the red column and green column , which is far more accurate than t

Mondo Finance Updated on 2024-01-29

Trading is the ultimate freedom. The market is full of endless opportunities for profit and loss. In the world of trading, human emotions are both opportunities and challenges.

Take control of it and you'll be successful. Ignore it, and you're in danger. To be a successful trader, you must understand human emotions.

The market is made up of individual people, each with their own hopes, fears, and weaknesses. As a trader, you look for opportunities in these human emotions.

Maintain a relaxed mindset. Make a trade, set a *** No one cares if you stop out of the market, you just do your job and actively protect your capital.

Professional traders accept small losses, while amateur traders rely on "hope" and sometimes pray in the hope of saving their trades.

MACD classic usage: Keep in mind the "red column and green column", which is far more accurate than the "golden cross death fork", and taste it carefully!

The MACD green bar is gradually enlarged, and when the green bar appears at its highest point (the longest green bar), * also tends to correspond to the low point of the band;(It does not correspond to divergences).

* rises, the MACD red bar gradually amplifies, and when the red bar appears at its highest point (the longest red bar), * often corresponds to the high point of the band. (It does not correspond to divergences).

Following these rules, we can conclude that:

When the ***MACD green bar gradually enlarges, buy when the green bar appears at its highest point.

The question is how do we tell if the MAD green column is the longest one that day?

Because the number of green columns is not fixed, it can be continuously enlarged.

When the ***MACD red bar is gradually enlarged, sell when the red bar appears at its highest point.

The question is how can we tell if the MACD red bar is the longest on the day

Because the number of red columns is not fixed in the process of gradual enlargement, it can continue to be enlarged after magnification.

As long as the above two problems are solved, the previous conclusions can be effectively applied!

The red and green bars expand the difference between the fast line and the slow line by 2 times, and then display it with a histogram, and use the change of the bar to show **, through the characteristics of "red strong green weak", we can directly judge **.

Turning red** and turning green to sell is the simplest and most practical mantra for red and green columns. In addition, everyone should also remember that the decrease in the area of the green column is a short-term buying point;The reduction of the area of the red column is the first selling point.

MACD Bottom Divergence ** Method:

When the stock price ** hits a recent stock price low, and the MACD's green column or DIF, DEF two indicator lines do not synchronously create new lows, at this time, the stock price and the indicator have a bottom divergence, and the bottom divergence phenomenon is a signal that the stock price is about to bottom.

Technical points. 1) Pick the stock price after a wave of divergence.

2) The stock price can diverge from the bottom of one of the MACD green column or one of the two indicator lines of DIF and DEF.

3) Suitable for different cycles.

The stock's 60-minute move diverged from the bottom of the MACD at 10The ** of 38 yuan was opened, and then the stock price bottomed out and rebounded.

Golden cicada shedding**

When ** is weakening, investors can use the selling method of the double top pattern of the golden cicada shelling to achieve the purpose of getting out of the predicament with a minimum loss.

The interval between the two highs at the head of the m is at least a month, and the high on the right may form a pattern of arc tops.

The high point on the left is the area with a large trading volume, and then the transaction of ** will shrink, and when the stock price recovers, the trading volume will increase, which is in line with the pattern of the sky-high price after the seer day.

The two highs of the m-head are not necessarily at the same level, and a difference of less than 3% is acceptable.

When the stock price falls below the neckline, the neckline support will become pressure, and the stock price will pull back, and it will be the last chance to escape for a short time.

The m-head indicates that the upward trend of the stock price has ended, and its measured decline is calculated from the neckline, at least the difference distance from the highest point of the m-head to the neckline.

Rapid pull-up

There will be a downturn before the start of the rapid rally**, and the trading volume is shrinking, so you should pay close attention to the trend of the stock price.

Once the stock price breaks through or the stock price can be sealed on the price limit with a small trading volume, it can be followed up immediately, which is the best time to enter the market

If you don't catch up with the first wave of rally**, you can enter the market again when the stock price falls back to between the 5-day MA and the 10-day MA

Or when the stock price maintains the platform consolidation trend on the way up and breaks through the platform in a large volume.

**slowdown,**slowdown;Accelerate, speed too.

*The form can be roughly divided into two types, one is the **slowing type, and the other is the **accelerating type.

The meaning of this trick is that in a continuous **process, from the daily **, the amplitude of ** is getting smaller and smaller, then it ** when it generally starts slowly, you have time to follow up, but if you look at it from the day**, the trend of the decline is getting bigger and bigger, it ** when it starts suddenly, the speed is fast and the amplitude is large, you have to react quickly to chase in, otherwise, when you find out, it is already a big white line with a long lower shadow at the bottom, and the profit margin is not big when you enter late.

Mainly for the **slow type of move, then for the **acceleration trend, if you wait until the **turn red, it will be a little late, therefore, you must"Move with the times"It's up to you to feel the best time.

Generally in"The most dangerous moment"Get involved decisively.

Boll Sell Pattern: The stock price is experiencing resistance in the middle of the band

In 2012, at the end of the year, it went up, and finally at the end of June, but the stock price failed to effectively break through the suppression of the middle band of the Bollinger Bands, and finally the stock price began to fall back.

When the stock price encounters resistance at the middle band of BOLL, it means that the stock price is in the middle of the ball and may continue along the channel between the middle and lower band of BALL in the future, which is a bearish sell signal.

When the stock price encounters resistance in the middle track of BOLL, it means that the stock price has been in a continuous position, and investors should sell their hands as soon as possible to avoid risks.

After selling, investors can continue to observe the future market. If the stock price bottoms out in the future and breaks through the middle track of BOLL, it means that the stock price is over*** and begins**, at this time investors can buy back what they just sold ** and continue to hold it.

Investment insights

No one who dares to enter the ** to participate in the game, at least no one will think that they are stupid, they are all smart people.

But ** is not destined to make money for everyone, so in the end, who can make money depends on who is smarter than others.

Investors should not be presumptuous, they must follow the signals of the trusted trading system to enter and exit, and act decisively after the timing of buying and selling is confirmed.

However, your own trading system must meet the three requirements of science, objectivity, and qualitative. Focus on doing one thing well, too many goals will make you dazzled, and in the end you will achieve nothing.

The market is full of contradictions, contradictions constitute the rise and fall of the market, the perception of the market, there is no absolute right, there is no absolute wrong, only the market is always right.

In the spear and shield of the market, in the right and wrong of the market cognition, look for a kind of moderation, a balance, not too extreme, not too absolute, survival of the fittest.

It's not easy to code words, like my article with a lot of likes and support, your likes are the driving force for me to keep updating, thank you for your support all the way!

Related Pages

    How to look at the futures MACD indicator

    The observation of the MACD indicator is like interpreting a mysterious picture,which needs to be carefully figured out in order to appreciate its mys...

    Can the MACD indicator be used in ETFs?

    Are MACD technical indicators suitable for ETFs?I think soApplicable,Whether it is a golden cross,a death cross,a top divergence,or a bottom divergenc...

    Usage of asphalt paint

    Asphalt paint is a kind of coating composed of coal tar asphalt and coal tar as the main raw materials,adding thinners,modifiers,driers and other orga...

    Urge usage fixed collocation

    urge is a verb that means urged strongly requested or Desperately hopeful It is often paired with other words or phrases to convey a specific meaning....

    The difference between the usage of in and on

    In and on are both prepositions,but their usage is different in many ways,mainly divided into meanings,usages,and emphasis.The following is a detailed...