Stock moving average system: The moving average system is one of the most important technical indicators. On the daily line, attention is paid to the competition for the annual moving average, and on the weekly line, attention is paid to whether the 60 week moving average supports the stock price. Generally speaking, stocks that have accumulated at the bottom of the stock price and effectively stood above the 60 week moving average can be identified as bullish stocks in the middle line. Choosing the appropriate price to participate will have stable returns.

Stock trading volume: Trading volume is the driving force behind the rise of stock prices. Even if stocks without a bottom pile of volume rise temporarily, most of their fate will go back and forth from where they are.

In addition, there is a high correlation between stock prices, trading volume, and indicators, meaning that stocks with increased trading volume and a sharp rise in stock prices have a slower operating speed, in other words, there is a greater upward potential; The stock indicators that do not match trading volume operate very quickly, and once the indicators reach their peak, the stock price also peaks. Such stocks have no expected upward space.

Bull Bear Watershed

The boundary ridge indicator for distinguishing bull bear transitions is EXPMA, which is the only clear and distinguishable common feature of every major bull stock so far, with golden crosses on daily, weekly, and even monthly lines.

Looking for stocks with a stock price above the 60 week moving average and a golden cross of this indicator, one can confidently perform band operations. Conversely, the main characteristic of bear stocks is that the high point of the stock price rebound is always suppressed by this indicator, falling all the way down and unable to rise.

Band buying points and selling points

Many non strong stocks show an upward trend with ups and downs. When buying, you can refer to the 60 minute CCI indicator, which shows a turning point when the stock price falls. When selling, refer to the 60 minute or 30 minute MACD and DMA indicators. When these two indicators cross downwards, it indicates that the stock price will enter a consolidation state.

It is worth noting that some stocks may experience a downward adjustment in these two intraday indicators but their stock prices remain sideways without falling. This is a sign of high intraday fund control. Once the moving average of the intraday indicators becomes sticky, the stock price will rise again.

Setting of combination parameters

The combination parameter system I set up has a certain auxiliary effect on grasping the buying and selling points of the band. If you want to learn from the application, you must first download a software that can accommodate multiple parameters. The main data set is (daily line): trading volume is set at 5 and 10; DMA setting 7,25; SLOWKD (Slow KD) settings are 9, 3, 3, 5; MTM (power indicator) setting 9,21; SAR settings are 4 and 4.

When three or more indicators cross upwards, the stock is bound to rise. When three or more indicators cross downwards from high positions, it indicates that the stock has entered a correction. When using these indicators, one should also be flexible and pay particular attention to changes in trading volume and moving average systems.

Application of Trend Indicators

Every software has dozens or even hundreds of technical indicators, and understanding and mastering the main ones is enough to deal with stock trading. It should be noted that the indicators used in bear markets and bull markets can be different. For example, in a bear market, rebound operations focus on the KDJ indicator. Once the daily or 60 minute KDJ indicator reaches its peak, the rebound will definitely end.

However, in a bull market, there is no need to worry about the KDJ indicator. During the upward movement of the stock index or price, KDJ will constantly cross or blunt, but it does not affect the stock index or price from repeatedly reaching new highs. The indicator with a high correlation with stock indices or prices in a bull market is MACD. As long as the daily MACD and trading volume do not both show a dead cross, one can boldly go long.

The above is an introduction to practical experience of commonly used stock technical indicators, hoping to be helpful to everyone. To achieve long-term stable profits in the stock investment market, it is necessary to learn more about stock investment knowledge and various stock trading techniques.