Briefly describe the application of smooth moving average convergence and divergence MACD

Among the many technical indicators, MACD is one of the simple and practical indicators, which is more suitable for small and medium investors who are new to the stock market and want to master certain technical indicators. Let's talk about the application rules of MACD: 1. Use the value of DIF and DEA and the relative value between the two to make market predictions.

(1) When both DIF and DEA are positive, it is a long market. DIF's upward break through DEA is a buy signal, and DIF's downward fall below DEA can only be considered a retracement.

(2) When both DIF and DEA are negative, it is a short market. DIF's downward break through DEA is a sell signal, and DIF's upward break can only be considered a rebound.

2. Use the curve shape of the DIF for analysis, mainly by using the principle of phase deviation of the index.

Specifically, if the direction of the DIF diverges from the direction of the stock price, it is time to take specific actions.

However, according to the above principles to guide the actual operation, the accuracy is not satisfactory. After years of practice, exploration and summary, the author comprehensively uses 5- and 10-day average price lines, 5- and 10-day average price lines and MACD, and its accuracy is greatly improved.

(1) After a long period of decline, the stock price began to bottom, and then the stock price began to slowly recover. The 5-day and 10-day average price lines, the 5-day and 10-day average price lines, and the MACD all appeared at a golden intersection point, referred to as the three-gold fork. This is the signal that the stock price has bottomed out, and the more the number of crosses and the continuous improvement of the bottom, the higher the accuracy, and the stock is about to come out of a rising market. Such as: 0933 Shenhuo shares, on January 5, 2000, the stock's 5-day and 10-day average price lines, 5-day and 10-day average lines and MACD simultaneously appeared at the bottom of the golden fork, that is, the three golden forks appeared, this is the best time to intervene, followed by a strong upswing in the stock market. In three months, the share price rose from 10.69 yuan to 17.50 yuan, an increase of 70%.

(2) When the stock price has risen sharply and is sought after by many small and medium-sized investors, the main force begins to distribute, then the 5-day and 10-day average price lines appear, and the 5-day and 10-day average lines and MACD are dead at the same time, which is the best time to sell. At this time, if there is a slight hesitation, the stock price will plummet. After the main force fled, it was followed by a continuous decline.