Chapter 132: Technical Indicator Resonance
"For example, there are three situations in which KDJ, a commonly used indicator, sells it, that is, the K value or D value of the random indicator is less than 2O, and the J value is less than the O line."
Ding Xu adjusted the analysis cycle of Baotou Iron and Steel rare earth to the weekly line, explaining, "From the perspective of medium and long-term time cycle indicators, when Baotou Iron and Steel rare earth fell to 5.66 yuan at the lowest, the KDJ index of the weekly K-line fully conformed to these three situations, and then the J value crossed the K value and D value below 2O, which is completely a classic golden cross." Whether from a technical point of view or from the past historical trend, once the weekly K-line appears this kind of golden cross, it is likely to usher in a wave of medium-term upward movement. ”
Teacher Du Yucheng held his chin and looked at the picture shown on the projector, without saying a word.
The other students also listened quietly, and Liu Yue quickly recorded some fragmentary sentences in a notebook.
"It's December 5th, the weekly K, D, and J values are 29, 2O, and 48 respectively, and the trend is very healthy, and it is still far from the selling area. However, if we look at it from the monthly side, the K, D, and J values of the monthly line are 5, 12, and -8 respectively, indicating that the stock price is still bottoming out and has not officially turned upward. ”
Ding Xu continued to explain his judgment, "If you look at it from the daily line, the K, D, and J values are 64, 53, and 85 respectively, and the J value has begun to enter the selling area. And from December 1st to 4th, in four trading days, the stock price rose from the lowest price of 6.87 yuan to the highest price of 8.48 yuan yesterday, an increase of more than 23%, and there were many profits. In addition, yesterday's Baotou steel rare earth and the market are the same. Dive in the afternoon. The dive was close to 7%. And released a recent volume of 272 million yuan, closing a meteor line that rushed up and down, which indicates that the stock price will be adjusted in the short term. ”
"That's right, the trend of different time periods points to a contradiction! The monthly KDJ indicator shows that it is bottoming, the weekly KDJ indicator shows that it is halfway through a round of intermediate upward trend, and the daily KDJ indicates that it will peak and fall back in the short term. There are three cycles, which are outside the bottom of the mountain, the mountainside and the top of the mountain. This is indeed a very common conflict. ”
When Du Yucheng heard this, his eyes narrowed slightly, he took the mouse in Ding Xu's hand casually, adjusted the analysis cycle, and concluded, "And if you open 6o minutes, 3o minutes and lines respectively, they are still rising, running above all moving averages, but the 3o minute k-line has flattened." The 15-minute candlestick has begun to take the lead in the pullback, falling below the 2oma moving average. Again, this creates a contradiction. ”
Mr. Du is right, this kind of conflict between different time periods is very common when looking at the market. And this is only an analysis of a KDJ indicator, if combined with other indicators, there will be other conflicts, such as just analyzed, the KDJ indicator of Baotou Steel rare earth has begun to sell, but if you use the commonly used MACD indicator to analyze, it is another matter. ”
Ding Xu smiled and said, "Since the bottom of 5.66 yuan on November 7, the two lines of MACD's DIF and DEA have been neck and neck, advancing towards the top of the O axis, and yesterday it was very close to the O axis, and the red column was also enlarged again, showing that there is likely to be a wave of sprint market in the future, and it may not begin to adjust until it rushes to the O axis." If you add different technical indicators such as r private, wave 11, and obv, and analyze them with different time periods, there will be more conflicts and contradictions, which makes people confused. ”
"You're right, it's a tricky question. The trend of the same stock and the same time period is analyzed by using different technical indicators and different time periods, and sometimes completely different long and short conclusions will be obtained. And the bad thing is that there doesn't seem to be an authoritative solution in the industry at the moment, so this has become a weakness of the technocracy. So sometimes, technical analysis is more like an academic argument, you have your basis, I have mine basis, and it's hard to reach a consensus and draw a definite conclusion. ”
When Du Yucheng said this, he seemed to touch some things, shook his head and sighed for a while, then his face froze, looked at Ding Xu and said, "For the solution of this problem, some people only use a single technical indicator such as MACD to trade, that is, to buy on the basis of what indicator, on the basis of what indicator to sell, so that it will not be chaotic." The same is true for time periods. Ding Xu, how did you solve this problem? ”
Du Yucheng's words are a bit sharp, but they are a grim fact.
For the conflict between different technical indicators, including the contradiction between technical indicators of different time periods, many investors are at a loss and do not know how to solve it.
Sometimes, the more technical indicators you grasp and the more different time periods you look at, the more severe this conflict becomes.
There are few solutions on the web for this, and most of them are not very reliable.
It can be said that this involves a relatively professional field, and it is not easy for ordinary shareholders to grasp the solution on their own.
Even if you ask the analysts of securities companies, most of them will tell you not to learn so many technical indicators, only three or five commonly used technical indicators are enough, and at the same time, don't look at so many time periods, mainly based on the daily line.
There is some truth to this statement, but it is not a perfect solution. Because even if only three or five technical indicators are used, there will be a conflict of zài technical indicators. Moreover, the weekly line, monthly line and other medium and long-term time weekly lines are of great help to grasp the long-term trend when selecting stocks, and the 6O minute, 3O minute, and 15-minute K-line are also very helpful for grasping the short-term buying and selling points.
And the method that Du Yucheng just said is obviously more radical -- if you have a target of 10 million, I will only use one. So that there are no contradictions, and there are no conflicts. The same is true for the use of time periods, for example, the daily line is used as the basis for judging when buying, and the daily line is also used as the basis for judgment when selling, without considering the weekly, monthly and 15-minute K-line.
The advantage of this is that there is no conflict, and shareholders will not be entangled when operating.
Of course, such a defect is also obvious - although it is relatively simple to judge, but because of the use of a single indicator to judge the market, it is often not accurate enough, and it is easy to be deceived by the market maker and fall into the pit.
Fortunately, after continuous thinking and exploration, Ding Xu mastered a relatively simple solution, and was recognized by Qi Fei.
But this method has not been tempered and tested by much practical experience, so Ding Xu does not have much bottom in his heart, so today he took the opportunity of Du Yucheng to let himself operate in real terms to talk about this problem and his own solution, and see what comments and suggestions Mr. Du and other students have, so as to further improve this solution.
"I once read a view on the Internet that when buying stocks, technical indicator resonance should be formed, such as when the monthly, weekly, and daily lines are in a falling position, a resonance is formed, and you can go in to buy the bottom. For example, when the monthly, weekly and daily lines are all in a position that has just started and is strongly rising, a resonance is also formed, and you can go in and enjoy the main rising wave. ”
Ding Xu replied, "In addition, when Yan Zòng buys or sells, whether it is KDJ or MACD, most technical indicators will form a resonance, pointing to the same target, prompting you whether to buy or sell." And if you can form a resonance of technical indicators between the market, hot plates, and leading stocks, it will be even more powerful, and you can defeat the enemy with one move and seal your throat with a sword! ”
"There's nothing wrong with that." Du Yucheng's eyes narrowed even more, "If you can find this kind of stock that forms a resonance of technical indicators, making money is simply a matter of handy." ”
"There is indeed nothing wrong with that, when we buy stocks, we should try to buy stocks that form a comprehensive resonance of this kind of technical indicators, so that we can make a lot more money."
Ding Xu said with a smile, "Don't underestimate the role of technical indicator resonance, you must know that resonance is a very wonderful thing." In the last century, there was a strange traffic accident in Angers, France, a team of soldiers walked on the 100-meter-long bridge with neat steps, because the pace cycle was similar to the inherent cycle of the bridge, causing the bridge to resonate, and the amplitude crossed the safety limit of the bridge body, and finally caused the bridge to collapse and die, and 226 soldiers died. As far as the load capacity of the bridge itself is concerned, it far exceeds the weight of this group of French soldiers, but because the soldiers are in unison and rhythmic, the bridge collapses under the action of this concerted force, which is the singular effect of resonance! (To be continued!)
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