MACD indicator:

The MACD indicator, also known as the Index Smooth Similarity Average in Chinese, belongs to the category of general trend indicators. It consists of five parts: the long-term moving average MACD, the short-term DIF, the red energy bar (long), the green energy bar (short), and the O axis (long short boundary). It uses the intersection of the short-term moving average DIF and the long-term moving average MACD as a signal. The cross signals generated by the MACD indicator are relatively sluggish, but when used to formulate corresponding trading strategies, the effect is better.

DIF line: the difference between the smooth moving averages of short-term and long-term indices at the closing price

DEA line: M-day exponential smooth moving average of DIFF line

Basic application of MACD

1. MACD is above the 0 axis - every time a golden cross occurs, the stock price will reach a new high

2. MACD is below the 0 axis - every time a dead cross occurs, the stock price will hit a new low

3. MACD is above the 0 axis - the golden cross belongs to an upward trend and a bullish market, which can be bought low and sold high, and then deviated from the top

4. MACD is below the 0 axis - the golden cross belongs to a downward trend rebound market, and only participates when it reaches the 0 axis

5. MACD is above the 0 axis - the more golden crosses and death crosses there are, the better, bullish stocks

6. MACD is below the 0 axis - the more golden crosses and death crosses there are, the worse it is for bear stocks

7. MACD will not turn gold into gold - the green bar will turn downwards for the second time and will inevitably fall

MACD buying and selling techniques

1. Eye of Rising (Buy)

When DEA is in an upward state or transitions from an upward or downward to a flat state, DIFF quickly crosses DEA from top to bottom and then rises to a golden cross DEA, forming a gap between the two lines, known as the "Eye of the Rising", which is the optimal buying point. This form can be divided into three types based on the 0 axis: above the 0 axis, near the 0 axis, and below the 0 axis (with double eyes appearing and a greater increase later on)

2. Eye of Decline (Sell)

When DEA is in a downward state or transitions from an upward or downward state to a flat state, DIFF quickly crosses from bottom to top with a golden cross DEA and then to a dead cross DEA, forming a gap between the two lines, known as the "eye of decline". In this situation, it is necessary to sell resolutely. On November 18, 2017, 002194 showed a downward trend, and the decline increased in the later period. (The decline in both eyes will be greater in the later stage)

If investors follow the MACD law of buying with a golden cross and selling with a death cross, those who are lucky can save up and make money, while those who are unlucky are likely to be trapped and unable to leave. In general, after a golden cross, it is not easy to fall and often results in a period of market trend. However, in actual combat, this is often not the case.

So, how should we grasp the MACD buying and selling signals in actual combat?

1、 Due to the fact that MACD is a variant of the Golden Cross, it is the most dominant and can intervene on or below the 0 axis.

The first MACD golden cross, without considering, the moving average is strongly downward, and the golden cross is likely to be the limit of the rebound. The first bottom deviates from the golden cross, with a small amount of participation, and the selling position begins to shrink at the red bar. The second bottom deviates from the golden cross, with a focus on participation. The selling position is at the point where there is an invisible deviation in MACD and the death cross of the band star. The golden cross at the back of the picture is used for analogy.

2、 In the process of MACD golden cross movement, the trend of the moving average is very important, and the upward trend of the 20 day moving average golden cross often has more opportunities.

The MACD0 axis straight line crosses for the first time, but it is closer to the 0 axis and does not participate during the golden cross. However, with the rise of the 20 day moving average and the completion of a short-term bullish alignment, it is possible to participate at this time.

What kind of situation can I sell after MACD golden cross?

Selling should still be done using the old method of taking profits when the MACD deviates from the top. Generally, when there is suspicion of a top deviation, especially when there is a significant suspicion, taking profits should be sold. If there is an invisible top deviation, then as long as the band star shows a dead cross, selling should be considered. If the stock price rises significantly, the Band Star is likely to form a top divergence. If the moving average rises in parallel, it is firm to hold onto the stock. When the Band Star indicator drops from a high to around 100, the stock price reaches a new high and needs to be sold; If the top divergence occurs and the moving average has already adhered, it is time to sell decisively. If there is no divergence at the top and the stock price rises sharply, then it should be left out to wait and see at a high of around 150.

3、 MACD invisible deviation, band star dead cross out.

After the MACD golden cross, there are several common selling methods. At the same time, we can see how important the arrangement of moving averages is. If the moving averages are disorderly or the medium to long term moving averages become pressure, although the 20 day moving average rises, it is mostly possible to consider selling when encountering pressure positions.

4、 Is there any way to predict the spatiotemporal trend after the golden cross?

The main basis is the MACD long short power balance, where the red is much larger than the red near, and the green is much smaller than the green near, indicating a relatively large upward potential in the future; The bottom deviation from the golden cross has significantly increased compared to the previous golden cross, indicating a relatively large upward potential; The bottom deviation of the Golden Fork stock price has led to a significant decline compared to the previous Golden Fork stock price, with a relatively large upward potential; The longer the bottom divergence, the longer the period of rise.

A point is a clear daily level bottom deviation from the golden cross. Can you determine the subsequent trend when the golden cross occurs? According to the MACD long short power comparison, the red position is much larger than the red position recently, and the green position is much smaller than the green position recently. This indicates that the bulls are very strong here. In addition, the bottom deviation from the golden cross has been significantly increased, indicating that the upward space should be good and it is a typical position that can be intervened.

Don't think you have mastered any stock market password and then proceed to attack point A according to the requirements in the above picture. This is a form that we are very optimistic about, but unfortunately there is not much increase. So it is important to pay attention to the adjustment after the golden cross, as in most cases, there will be a wave of upward movement afterwards. Trading must be careful and cautious!

You will find that every time you snipe MACD, the undead form is deceived by the main force and eventually evolves into adjusting the death fork. The most interesting part of stock trading is also here, uncertainty is the charm of stock trading.

5、 Is there any way to significantly increase the success rate of sniping MACD without dying?

Sniping MACD is generally divided into three levels: bearish market below the 0 axis, critical point market near the 0 axis, and bullish market above the 0 axis. We use graphics to elaborate.

Under the bearish trend, MACD will not die and will not turn upwards. When it turns upwards, the star of the band, the golden cross, appears. After the appearance of ground volume, it increases slightly again and successfully attacks the 5-day moving average, causing the 5-day moving average to turn upwards. The 20 day moving average has already turned upwards. Fully comply with operational requirements, intervene. But in a bearish market, one needs to be very careful after intervention, as the market will not be too long and should be short-term. At this point, it is important to pay attention to the land volume, which should be very clear and significantly smaller than other volumes in the trading cycle at that time. Due to the bearish market, it is best to find a golden cross that deviates from the bottom of the band to intervene and reduce risk.

Near the 0 axis, MACD will not die and will not turn upwards. When it turns upwards, the star of the band, the golden cross, will appear. After the appearance of ground volume, it will increase its volume again and successfully attack the 5-day moving average. The 5-day moving average has turned upwards, and the 20 day moving average has already turned upwards. The 60 day moving average is also trending upwards. The candlestick of the day has recovered all the moving averages with a positive candlestick, which fully meets the operational requirements. It is recommended to intervene. At the position of the 0 axis, it is the critical point for long and short positions. The upward trend of the moving average is very advantageous for bulls to attack, and the combination of quantity and price is very worthwhile to intervene. Since there is no dead cross adjustment near the 0 axis, the selling opportunity is at the top deviation and invisible top deviation positions, and it is also possible to sell twice above the 0 axis with a dead cross. Indicating a long-term market trend.