The rise and fall of a stock can not only affect a person's wealth, but also their emotions, and in the long run, the strength and momentum of a company. So, how many points have stocks become bullish? Here are the methods.
The number of points that have risen in a stock is the magnitude of the price increase.
Whether the stock price has risen is measured by the fluctuation and magnitude of the fluctuation compared to the closing price of the previous trading day.
1. Price fluctuation refers to the amount of fluctuation between the current stock price and the closing price of the previous trading day. The formula is:
Rise and fall=current stock price - closing price of the previous trading day
2. The fluctuation range refers to the fluctuation range of the current stock price compared to the closing price of the previous trading day. The formula is:
Stock price fluctuation range=(current stock price - closing price of the previous trading day)/closing price of the previous trading day
In investment, when people buy and sell stocks based on KDJ, they often encounter the following problem: sometimes the stock price does rise a lot after KDJ gold cross, and sometimes the stock price does not rise but falls after KDJ gold cross,
Or it may have just risen a little and then continued to fall, causing many investors to doubt the effectiveness of KDJ and subsequently doubt the effectiveness of technical analysis. So, is the buying and selling signal given by KDJ useful,
Or under what circumstances is KDJ crossover most effective? After years of practice and research, the author has found that combining KDJ with wave theory yields the best application results. Today, let me talk to you about how to use KDJ
Capture the starting point of the bottom of the three waves of decline.
Firstly, set the technical indicator parameters. Set the weekly moving average parameters to 5, 13, and 21, KDJ to 5, monthly moving average parameters to 3, 6, and 12, and monthly KDJ parameter to 6.
After adjusting the above parameters, we set the stock selection criteria. It is worth noting that we used weekly and monthly candlesticks instead of daily candlesticks in our study of KDJ, which resulted in better performance.
If a stock meets the following conditions during a continuous decline, it means that the stock's downward trend has come to an end, followed by a very ideal upward trend. These conditions are:
1、 The decline in stock price completed the three wave process of "decline rebound decline", and hit a new low in the third wave of decline;
2、 During the third wave of decline, as the stock price continued to decline, trading volume gradually decreased and remained at a certain level;
3、 The moving averages for weeks 5, 13, and 21 are bearish, or the moving averages for months 3, 6, and 12 are bearish;
4、 On the basis of the above, KDJ experiences a golden cross, and at the time of the cross, it receives a weekly (or monthly) bullish trend.
In stocks, it is often said that there will be a few points increase, and points are the abbreviation for percentage points, which is the unit of the stock price index.
In stock trading, people often use verbal language, such as saying in the stock market that a single stock has risen by 5 points means that the stock has risen by 5%.
For example, a stock is currently priced at 10 yuan and has risen to 10.5 yuan, which is a 5% increase, or a 5-point increase.
The fluctuation range of stocks is calculated by comparing the closing price of the current trading day with the closing price of the previous trading day.
The calculation method for the fluctuation range is to subtract the difference between the closing price of the current day and the closing price of the previous trading day, and then divide by the closing price of the previous trading day.
The formula for calculating the range of rise and fall is: range of rise and fall=(current price - yesterday's closing price)/yesterday's closing price * 100% (positive value represents rise, negative value represents fall).
At present, the trading rules of the Shanghai and Shenzhen stock markets are as follows: the maximum limit for the daily rise and fall of stocks is -10%, for ST stocks it is -5%, and for new stocks it is -44% on the first day of listing. Other special regulations on the rise and fall range will be calculated separately.
These can be gradually understood in future operations. In order to improve their stock trading experience, beginners can use a stock trading simulation tool called Niugubao to learn stock knowledge and operation skills, which will be helpful for future profits in the stock market.
