Moving average is the sum of closing prices in n periods divided by n, where n represents the number of bars in the previous period. It is often referred to as the simple moving average. A moving average represents a smooth trend. Moving averages with small parameters show the trend of fast time periods. They react very quickly to price changes, but there will be more jagged trends. The larger the parameter of the moving average, the better the smoothness of the indicator, and the better it can show the trend direction of a longer period. One disadvantage of moving averages with larger parameters is that it tends to lag the current price trend.
MACD Moving average convergence divergence : Moving average convergence divergence or MACD is a technical analysis tool recently created in the United States. MACD has absorbed the advantages of moving averages. Using moving averages to determine the timing of buying and selling is very effective when the trend is obvious, but if it encounters the consolidation of the cowhide, the signals sent are frequent and inaccurate. MACD developed according to the principle of moving average, firstly overcomes the shortcomings of frequent false signals of moving average, and secondly, it can ensure the maximum result of moving average.
The full name of KDJ is Stochastic Oscillator Indicator, created by George Lane. Its comprehensive momentum concept, strength indicators and moving average advantages were used in futures investment in the early years, and its functions are quite significant. It is currently the most used in the stock market. One of the indicators. Principles of buying and selling:
1. The K value crosses the D value from the right side downwards for selling, and the K value crosses the D value from the right side upwards for buying.
2. Two consecutive downward crosses at the high end confirm the downtrend, and two upward crosses at the low end confirm the uptrend.
3. D value<20% oversold, D value>80% overbought; J>100% overbought, J<10% oversold.
4. When the KD value hovers or crosses around 50%, it is meaningless.
5. Individual stocks that are too speculative are not applicable.
6. Observe the deviation between the KD value and the stock price to confirm the high and low points.
RSI is relative strength index. The calculation formula of RSI is: RSI = 100×N average increase in closing price within a day ÷ (average increase in closing price within N days + average decrease in closing price within N days) The N in the formula is generally 6, 9 or 14. The formula shows that the strength index only varies between 0 and 100. For investors, the function of the RSI indicator is to display the average relationship between the closing price increase and decrease in the past N days through data information, and to make trading decisions.