The Special Position of the Five-day Good Departure Rate (5BIAS) in the Stock Market

Every big market fluctuation will be vividly reflected in the technical indicator 5BIAS. In the dazzling market of the "95.5.18" for three days, it was the first among many technical indicators to send an accurate and strong sell signal at 900 points. "95.5.18", 5BIAS was 23.46; "95.5.19", 5BIAS was 27.23; "95.5.22", 5BIAS was 21.98; resulting in many people who sold short in this area benefited a lot, and naturally escaped the plunge. Practice has repeatedly proved that the short-term indicator is the most sensitive, accurate and most used.

Looking at the stock market, no matter how favorable or bearish the fundamentals are, and how the main force of the market tries to dig their minds, if the stock price is too far from the average, it will reverse at any time. In this way, there is the concept of obedient departure rate. The obedient departure rate can be divided into positive obedient departure rate and negative obedient departure rate. Take the 5-day obedient departure rate (which is more sensitive), its formula is:

5BIAS = (closing price of the day - 5-day moving average) × 100/5-day moving average

(In the past, the commonly used 6BIAS in the market was not rigorous enough. The deviation rate is relative to the moving average, so the classic five-day average moving line should correspond to 5BIAS.)

(1) According to the characteristics of China's stock market, the author believes based on his own practice over the past five years:

For the broader market: 5BIAS reaches - below 5, and bargain-based absorption.

5BIAS reaches - below 8, firmly buy,

Don't be deterred by the bearish atmosphere in the market. The ten major plunges in the Shanghai stock market have rapidly enriched a group of people. These people are brave buyers based on 5BIAS, so 5BIAS is one of the secrets to victory!

5BIAS reaches + 5 or more, and it is mainly distributed every high.

If the 5BIAS reaches + 8 or more, sell resolutely and don't be fooled by the high volume.

For individual stocks: the backbone of strong stocks (not referring to market stocks) can be set at 10, that is, when 5BIAS reaches 10, it will be distributed on highs; when 5BIAS reaches - 10, it will be absorbed on dips. The backbone of flat stocks can refer to the broader market and is still set at 5.

(2) 5BIAS can not only clearly judge the market in the sharp rise and fall market, but also navigate in the rising or falling market.

The tail market volume grabs the market, although the short squeeze atmosphere is strong, if 5BIAS does not exceed 2, there will be no major market; the tail market volume falls, but if 5BIAS is only - 2, the nature of the decline should be further confirmed.

(3) The good dissociation rate is more contradictory. Especially for super-strong stocks, when their share prices reach a new high, but their 5BIAS cannot reach a new high, indicating that the upward slope will be adjusted.

There are 3-4 major shocks in 5BIAS every year, which is an excellent opportunity for "bottom fishing and top escape" in Shanghai and Shenzhen. In other words, the short-term and extremely sensitive 5BIAS is more suitable for people who only operate three or four times a year, but they need to be tracked every day.