1. MACD Exponential Moving Average Convergence Divergence

MACD (Moving Average Convergence and Divergence) is a general trend indicator. It consists of five parts: long-term moving average DEA, short-term DIF, red energy column (bullish), green energy column (bearish), and 0 axis (bull-bearish dividing line). It can eliminate the frequent false signal defects of the moving average line and ensure the maximum achievement of the moving average line.

Application rules: 1. When MACD is above the 0 limit, it is a bull market, otherwise it is a bear market.

2. DIF and DEA are both positive, DIF breaks through DEA ​​upward, which is a buy signal.

3. DIF and DEA are both negative, DIF falls below DEA, which is a sell signal.

4. Analyze the MACD bar chart. If it changes from red to green (positive to negative), it is a sell signal; if it changes from green to red, it is a buy signal.

5. The DEA line diverges from the K line, which is a market reversal signal.

6. The effect will be better if the daily, weekly, monthly and minute lines are used together.

2. KDJ Stochastic Indicator

KDJ indicator is widely used in the market for short-term trend analysis. In the calculation process, it mainly studies the relationship between high and low prices and closing prices, reflecting the strength of price trends and overbought and oversold phenomena. Its main theoretical basis is that when prices rise, the closing price tends to be close to the upper end of the day's price range; on the contrary, in a downward trend, the closing price tends to be close to the lower end of the day's price range.

Application rules: 1. K-line is a quick confirmation line - a value above 90 is overbought, and a value below 10 is oversold;

2. Line D is the slow main line - values ​​above 80 are overbought, and values ​​below 20 are oversold;

3. The J line is a direction-sensitive line. When the J value is greater than 90, especially for more than 5 consecutive days, the price will at least form a short-term head. Conversely, when the J value is less than 10, especially for more than several consecutive days, the price will at least form a short-term bottom.

4. When the K value gradually increases from smaller to larger than the D value, the graph shows that the K line crosses the D line from the bottom. Therefore, when the K line breaks through the D line upward on the graph, it is commonly known as a golden cross, which is a buy signal.

5. In actual combat, when the K and D lines cross upward below 20, the short-term buy signal is more accurate; if the K value is below 50, and crosses the D value twice from bottom to top, forming a "W bottom" pattern with the right bottom higher than the left bottom, the price in the future market may have a considerable increase.

6. When the K value gradually becomes smaller than the D value, the K line will cross the D line from above, indicating that the trend is downward. Therefore, when the K line breaks through the D line downward on the graph, it is commonly known as a death cross, which is a sell signal.

7. In actual combat, when the K and D lines cross downward above 80, the short-term sell signal is more accurate; if the K value is above 50 and crosses below the D value twice from top to bottom, forming an "M head" shape with the right head lower than the left head, the price in the future market may fall considerably.

8. It is also a very practical method to judge the price top and bottom through the trend of KDJ deviating from the price:

(1) When the price reaches a new high, but the KD value does not reach a new high, it is a top divergence and should be sold;

(2) When the price hits a new low, but the KD value does not hit a new low, it is a bottom divergence and you should buy;

(3) If the price does not reach a new high, but the KD value reaches a new high, it is a top divergence and you should sell;

(4) The price has not reached a new low, but the KD value has reached a new low. This is a bottom divergence and you should buy.

9. It should be noted that the method of determining the top and bottom divergence of KDJ can only be compared with the KD value at the previous high and low points, and cannot be compared by jumping across.

3. OBV Volume Indicator

The OBV (On Balance Volume) indicator digitizes and visualizes the relationship between market sentiment, trading volume and price, and measures the driving force of the market by the change in trading volume, so as to judge the price trend. OBV can be used to verify the reliability of the current price trend and get signals that the trend may reverse. OBV is clearer than using trading volume alone.

Application rules: OBV cannot be used alone and must be used in conjunction with the price curve to be effective.

1. When prices rise and the OBV line falls, it means that buying is weak and prices may fall back.

2. When prices fall and the OBV line rises, it means that buying is strong and a rebound is likely.

3. The OBV line rises slowly, indicating that buying momentum is gradually increasing, which is a buying signal.

4. The OBV line rises rapidly, indicating that the strength is about to be exhausted, which is a sell signal.

5. When the OBV line turns from positive to negative, it is a downtrend and you should sell. Conversely, when the OBV line turns from negative to positive, you should buy.

6. The greatest use of the OBV line is to observe when the market will break out of the consolidation and the future trend after the breakthrough. The direction of change of the OBV line is an important reference index, and its specific value has no practical significance.

7. The OBV line has a relatively standard display for the determination of the second peak of the double top. When the price falls from the first peak of the double top and then rises again, if the OBV line can rise synchronously with the price trend and the price and volume cooperate, the bull market can be sustained and a higher peak will appear. On the contrary, when the price rises again, the OBV line fails to cooperate synchronously and falls instead, which may form a second peak, completing the double top pattern and causing the price to reverse and fall.

4. RSI Relative Strength Index

The RSI (Relative Strength Index) indicator analyzes the market's buying and selling intentions and strength by comparing the ratio between the closing increase and the total volatility over a period of time, thereby predicting future market trends and reflecting the market's prosperity over a certain period of time. The basic principle of RSI is that in a normal market, the strength of both long and short buyers and sellers must be balanced for prices to be stable.

Application rules: 1. The RSI indicator fluctuates frequently, but is very practical and is often used to judge medium- and short-term trends, as well as to predict periodic tops and bottoms.

2. The RSI indicator compares the upward and downward forces. If the upward force is greater, the RSI curve rises; if the downward force is greater, the RSI curve falls. This can be used to measure the strength of the market trend.

3. The 6-day RSI indicator is a short-term technical indicator, suitable for analyzing the price trend in a shorter period. If you want to analyze the price trend in a longer period, investors can refer to the 12-day RSI line and the 24-day RSI line.

4. The value range of the RSI indicator is between 0 and 100. RSI=50 is the dividing point between a strong market and a weak market. When the RSI curve breaks through the 50 position from top to bottom, it means that the market has weakened; when the RSI curve breaks through the 50 position from bottom to top, it means that the market has begun to strengthen.

5. Investors can define the overbought and oversold zones based on the specific market conditions. In general market conditions, an RSI value (usually determined by the 6-day RSI) above 80 is considered overbought, and below 20 is considered oversold. However, in a bull market, the overbought zone can be set above 90 and the oversold zone can be set below 30; in a bear market, the overbought zone can be set above 70 and the oversold zone can be set below 10.

6. Due to design reasons, the RSI indicator will become blunt after entering the overbought or oversold zone. At this time, although the price fluctuates greatly, the RSI fluctuates very slowly. For example, in a "bull market", the RSI value often rises above 90; in a "bear market", the RSI value often drops below 10. Therefore, in a strong bull or bear market, if indicators such as VR show that the price is strong, investors should give up using the RSI indicator.

7. The value range of the RSI indicator can be divided into 5 areas. Investors can judge the strength of the market according to the area where the indicator value falls:

80~100 Very Strong Sell

Top 60~80 Buy

40~60 Moderate Wait and See

20~40 weak sell

0~20 Very weak Buy