MACD application-zhan

 First, MACD (Moving Average Convergence Divergence)
MACD literally translated as created, is a judged time stock trading, tracking stock trends technical analysis tools to run.
A, principles and concepts
MACD indicator is based on the principle structure of moving average, the closing price of the stock price smoothing, Find the arithmetic mean calculated later, is a trend categories of indicators.
MACD indicators of the use of fast (short term) and slow (long-term) moving average and the aggregate (Convergence) and separation (Divergence) signs smoothing operation to double.
moving average based on the principle developed in the MACD, a moving average in addition to frequent false signals issued by the defect, two retained the effect of moving average, so, MACD indicators are moving average trend , stable, stability and other characteristics, is used to judged the timing of buying and selling stocks, forecasting the stock price change of the technical analysis indicators.
MACD indicator by EMA, DIF, and the value of the relationship between the three DEA's analysis, the trend of stock prices. mainly includes three indicators, DIF, DEA and bars BAR.
DIF and linking the DEA's analysis and the moving average minus DEM DIF drawn into the histogram values (BAR)'s analysis such as to analyze and judge the market, predicted short-term price trends in the major stock market technical analysis indicators. which, DIF is the core, DEA is the secondary. DIF is fast and smooth moving average (EMA1) and slow Moving Average (EMA2) of the difference. BAR histogram technology software in the stock market is green with red bars and the contraction of determining the price column.
1, EMA (Exponential Moving Average)
Chinese translation for is a weighted moving average indicator is calculated moving average of a most complex, EMA increased the amount of current price changes, so moving average closer to the price curve, to improve the moving average lag weakness .
EMA (exponential moving average) and the simple moving average (SMA, Simple Moving Average) the principle is similar, but EMA (exponential moving average) for the recent price given greater weight, while considering the all transactions since the stock market prices, a larger proportion of recent price, the price fluctuations in the short term trend is easy to perceive movement. exponential moving average with smoothing effect, better reflect the price trend. its use and simple moving average, as may be regarded as support, resistance to use, but also two long-term use of the exponential moving average trading system settings.
calculation methods and formulas are as follows:
a, smoothing coefficient:
MACD one of the greatest strengths, namely, the smooth movement of its targets, especially for a certain volatility in the market, the characteristics of such a smooth move to a more moderate price picture of wave action and improve usability. However, in the calculation of EMA before, we must first obtain the smoothing coefficient. The so-called smoothing factor, refers to the number of units moving average cycle, such as days, weeks, etc., the formula is: smoothing factor = 2 / +1 cycle units, such as:
九日 smoothing coefficient = 2 / (9 +1) = 0.2
the 12th smoothing coefficient = 2 / (12 +1) = 0.1538
the 26th smoothing factor = 2 / (26 +1) = 0.0741
b, EMA (Exponential Moving Average) calculation
(1) Simple
yesterday, today, EMA = EMA + smoothing coefficient t (today's closing price - yesterday EMA)
such as 12 and 26 EMA Day EMA formula is as follows:
the 12th index average (12EMA) = yesterday 12EMA +0.1538 t (today's closing price - yesterday 12EMA)
the 26th index average (26 EMA) = yesterday 26EMA +0.0741 t (today's closing price - yesterday 26EMA)
(2) Precision
volatile activity since a daily market of different sizes, not suitable to the daily closing price to calculate the moving average, so there is a demand Index (also known as weighted average) DI (Demand Index) generated by DI on behalf of the daily closing prices. computation, respectively, the weight of the right to increase the number of recent day (twice), that gives the index close higher weight, calculated as follows:
DI = (t2 + closing price highest price + Low) / 4
exact type of EMA is calculated as follows:
yesterday, today, EMA = EMA + smoothing coefficient t (DI today - Yesterday EMA) = yesterday, EMA + smoothing coefficient t 【{((t2 + the highest closing price + Low price) / 4} - Yesterday EMA)】
such as the 12th and 26 EMA EMA formula is as follows:
the 12th index average (12EMA) = yesterday 12EMA +0.1538 t (today DI - yesterday 12EMA) = {【yesterday 12EMA +0.1538 t (t2 + the highest closing price + Low price) / 4} - yesterday 12EMA】
the 26th index average (26 EMA) = yesterday 26EMA +0.0741 t (today DI - yesterday 26EMA) = {【yesterday 26EMA +0.0741 t (t2 + the highest closing price + Low price) / 4} - yesterday 26EMA】
C, calculated at an average initial value
When it comes to the average of the index for the continuous record, can be the first day closing price or the demand index as the index of the average of the initial value. To be more precise Some, you can put the last few days the average closing price or the demand index, the average price for its initial value. In addition. the cycle can be selected according to their number of units, do the base for calculating the average of the data.
2, from the difference (DIF)
DIF is a short-term and long-term exponential smoothing moving average difference between the formula: DIF = 12EMA-26EMA
= yesterday 12EMA +0.1538 t (today DI - yesterday 12EMA) = 【yesterday 12EMA +0.1538 t {(t2 + highest closing price + Low price) / 4} - yesterday 12EMA】 - yesterday 12EMA +0.1538 t (today DI - yesterday 12EMA) = {【yesterday 12EMA +0.1538 t (t2 + the highest closing price Price + Low) / 4} - yesterday 12EMA】
3, DEA (DIF Exponential Average)
DEA DIF line M is at exponential smoothing moving average, the general parameters of M = 9. 9 calculated according to DIF Day EMA, the average deviation is asked for the MACD value. In order not to be confused with the indicators originally called, this value is also known as DEA or DEM., formula: Today DEA (MACD) = yesterday DEA +0.2 t (today DIF - Yesterday DEA)
4, BAR wire line and DEA DIF poor line, color column line, the formula: column value (BAR) = 2t (DIF-DEA)
B, features:
1, from MACD formula see, nothing to do with the volume. MACD based entirely in the N-day average price, that is average, but with the common difference is that average system, MACD is used in EMA moving average transaction price on the previous day were weighting. Applications must be combined with the first volume MACD observed.
2, is now widely used MACD 12,26,9 three parameters, in theory, IPO close of trading on 12, to be able to calculate the 12EMA, No. 26 end of the day can add calculated 26EMA, in order to obtain the first DIF, the first 35 trading days to calculate the end of the first DEA, to generate the value of the first BAR. (30 minutes, 60 minutes MACD same reason) prior to these dates, the arithmetic mean of general use DI instead.
3, according to the above formula, DIF and the DEA will be positive and negative, DIF is more volatile than DEA, trend sensitive than DEA.
4, the DIF The calculated parameters used for the 12EMA and 26EMA, so the main line of action if you want to cheat, cheat chart than the K line is higher operating costs, compared with more chips or money.
5, the DI of were weighted closing price of the day, so if you suddenly put massive late, will have some false signals DI will cause a certain degree of distortion of the date of DIF, but this effect is not large, the actual application without special consideration, as long as the heart few can.
6, the MACD of the past 12EMA and 26EMA, so there is a lag effect, and does not take into account the factors that volume, so do not alone determine buying and selling stocks.
7, the only use of the two prices Exponential Moving Average MA (EMA) as the basis for calculating the MACD, it is certain one-sidedness, in some sense as a number of simple moving average (SMA) response to stock a comprehensive and should be commonly used SMA with the common observation of stock prices would average system.
C, General application
MACD indicator of the general criteria are judged around the DIF and the DEA two moving averages and the red, green bars start position and their shape. the general analysis methods include the value of DIF and the DEA and their location, DIF, and the intersection of DEA, the contraction of columnar and graphical form MACD major aspects of the four.
one, MACD parameter values and position
1, when the DIF and the DEA are greater than zero (that is, that for them on the graph is above the zero line) and move, the general said in a bull market, the stock market, you can buy or holdings. DIF and the DEA is greater than zero, meaning that over the past 12 days Average price movements up and up in the average price changes in 26 above, if the bars at this time is greater than zero (red), converted into two moving average moving average is fired up, and 12EMA in 26EMA above.
2, when DIF and the DEA were less than zero (that is, that for them on the graph is zero line) moves to the next, the general said in a bear market for the stock market, you can sell the stock or wait and see. DIF and the DEA is less than zero, which means the average price over the past 12 days and the 26th of change down the average price changes up under the bars if the time is less than zero (green), converted into two moving average moving average is down to diverge, 12EMA in 26EMA under Figure:
3, when the DIF and the DEA were greater than 0 (that is, that for them on the graph is above the zero line), but are down, if the DIF is greater than DEA, Hongzhu line shortened, if the small DIF the DEA, the green bars, the situation that the stock price will fall. converted into average is 12EMA and 26EMA start Guaitou down.
4, when the DIF and the DEA were less than 0:00 (ie, the graph expressed as they are below zero), but moving up, if the DIF is greater than DEA, red bars and gradually lengthened, if DIF is less than DEA, reduce green bars, the situation is expressed as price will rise, you can stock or shares to be bought up. converted into average is down 12EMA and 26EMA began to go flat Guaitou start up.
qualitative change in the MACD moving averages converted into changes contribute to a better understanding of the principles of MACD, As for the quantitative conversion, would be too rigidly adhere to meticulous distal.
Second, DIF and the DEA cross-case
1, when the DIF and the DEA are above the zero, while the DEA DIF break up, it indicates that the stock market in a Among the strong, the stock will rise again, you can buy stocks or shares to be up, MACD indicator is the reflected in the moving average is close to 26EMA 12EMA up and later began to accelerate, opening up two moving averages.
2, when the DIF and the DEA are zero line, while the DEA DIF break up, the show is about a stronger stock market, stock prices fall Potential done to climb up, you can start buying stocks or shares, which is MACD indicator is 12EMA began to 26EMA on close, DIF, and the more recent DEA from the zero line, average time to shape up into a faster cross, DIF, and DEA farther away from the zero line, the formation of upward moving average cross the longer. If the negative DIF and the DEA value far away from the zero line, indicating a long period of declining stock prices, the cross is difficult to describe the problem.
near the zero axis, short-term upward twice DIF cross DEA, will result in greater gains. MA meanings: DIF for the first time cross-DEA, said the DIF values increasing above the average and the gap between 12EMA in 26EMA increasing; then DIF down cross DEA, said the DIF value decreasing, MA 12EMA began to 26EMA close the gap between shrinking; DIF 2nd upward immediately cross-DEA, said the DIF values and increasing average 12EMA and 26EMA began to widen the distance, and 26EMA above.
DIF and the DEA is far more than the zero line, indicating that the 12EMA in 26EMA far below, is a typical form of the recent acceleration crash ..
3, when the DIF and the DEA are above the zero line, while the DEA DIF when they break down, indicating that the stock market is about to become weak by the strong, the stock will go a long down, then most of the stock should be sold and can not buy stocks, and this is MACD indicators larger decline.
4, when the DIF and the MACD is below zero, while the DEA DIF break down, the show will once again enter the extremely Ruoshi stock, the stock price will fall, you can then sell the shares or wait and see This is the MACD indicator .
6, DIF and stock to form the signal generated by divergence, high reliability
three, MACD histogram indicator in the analysis of
1, continue to enlarge the time line when the red bars, indicating that stock prices are on the rise market, the stock will continue to rise, then should be up or short-term holdings to buy shares, until the red bars can no longer be amplified before considering selling.
Hongzhu lines continue to enlarge the meaning of: DIF been greater than DEA, DEA is the DIF of the 9 EMA (exponential moving average line), DIF is the difference between 12EMA and 26EMA. column to ensure that the red line, we must ensure that DIF is always greater than DEA, while DEA DIF to precondition is always greater than that DIF The value must always increase, that must ensure 12EMA always greater than 26EMA (and 12EMA always 26EMA above, and the difference between the two has increased), the reaction is, on the average shape and 26EMA 12EMA open up, showing arrangement of the so-called long.
Hongzhu can not enlarge the meaning of: 12EMA and 26EMA average share price began to go flat, short-term stock price began to stagflation.
2, when the green bars continue to enlarge, it indicates that the stock market in decline , the stock will continue to fall, then should hold out or sell stocks begin to shrink until the green column can be considered when buying a small amount of stock.
green bars continue to enlarge the meaning of: DIF value of continuing is less than DEA, 12EMA sustained less than 26EMA, reflected in the average morphology is 12EMA and 26EMA opening down, rendering the so-called short order.
column begins to narrow the meaning of green: stock 12EMA and 26EMA state from the beginning to go down the flat, short-term shares began to rebound.
3, a popular column began to contract, that the stock market rose end (or to a period of adjustment), stock price will fall, when most of the stock should be sold and can not buy stocks .
4, when the green column began to shrink when the stock market crash of that market coming to an end, the stock will climb up (or into the consolidation), then a small amount of long-term strategic Jiancang can not easily sell the stock.
5, when the red bars start to disappear, green column began to release, this is one of the stock transfer market signal that the stock market rally (or high level consolidation quotes) coming to an end, stock prices will begin to accelerate the decline, then should start to sell big can not buy shares of stock.
6, when the green column began to disappear, red bars began to release, this is one of the stock transfer market signals, indicating that the stock market decline (or low consolidation) has ended, the stock will begin accelerated, then should start to buy stocks or shares to be coded up.
four, MACD special analysis
A, form
1, M W the end of the first such line shape
when the red bars M header graphic form, indicating that stock prices will fall. green bars forming W end, indicating that stock prices will rise.
Hongzhu the meaning of the first line of M: DIF first sustained more than DEA, 12EMA sustained more than 26EMA; and DIF values suddenly began to decrease, 12EMA also begun to 26EMA close, DIF again before the next wearing a DEA increased, 12EMA have to start over 26EMA; DIF value of the 2nd sudden decrease, 12EMA also to 26EMA close second, and the speed is fast, speed up the formation of short-term stock price down state.
2, top and bottom away from the deviation away from
MACD indicators MACD indicator graph refers to the trend line graph exactly the trend of K opposite direction. MACD indicators have deviated from the departure from the two kinds of departure from the top and bottom.
(1) K top against
when the stock price on the stock trend chart of a peak than a peak, the stock has been rising, while the MACD indicator graph formed by the red bars graphic peak of the trend is lower than a peak, that is, when the stock price than the previous high point high point high, and high MACD indicators (including DIF values and red bars) than the previous high of index lower, is called away from the top phenomenon. departure from the top of the phenomenon is generally at a high price around about the potential anti-signal that is about the short term stock price decline is a signal to sell stocks.
(2). DIFF K
when the stock price chart the stock movement of a peak than a peak low, the stock has been in the fall, and MACD indicators on the graph by the green column is shrinking, that is, when the stock price low than the previous low point is low, the DIF values increasing green column is shrinking than the previous low of the high index, MACD, called the phenomenon. DIFF phenomenon generally occurs in relatively low-cost area, if the DIF appears twice from the bottom up through the DEA, the formation of two golden cross, then the price will a sharp rise.
MACD indicator appears in the strong departure from the market in general more reliable, high-priced shares, usually once deviated from the form as long as you can confirm the stock is about to reverse position, while the share price low, generally After repeated several times to confirm the departure. Thus, MACD indicators judged the accuracy of the departure from the top than the bottom away from.
3, cycle
longer green column, the greater the intensity the next increases, and longer. red bars to maintain the longer the greater the intensity of future space and decrease the longer.
this is well understood: the longer the green column, said consolidation in the low price the longer the time. Hongzhu maintain longer that shares the longer time at a high level.
five, MACD's application notes
1, MACD factors because there is no volume, so do not be alone, especially for small cap shares, making technical deception low cost.
2, MACD is relatively accurate departure from the top.
3, MACD crossover and Sicha gold is not very reliable, must be considered together with other technical indicators.
4, now popular parameters (12,26,9) K-line system for the day is still relatively accurate, but on line, 60-minute lines, and the other seems to accuracy is not high.
5, MACD is mainly used for medium to long term trend up or down tendency to judge, when the stock price volatility in the disk is not obvious when the Board or, MACD trading signal is not obvious. When the stock price fluctuations up and down in a short time, because of MACD moving very slowly, so it will not produce immediate changes in the stock price buy and sell signals.
6, MACD, DMA, TRIX three groups constitute a set of indicators, mutual authentication.