The significance and role of MACD and KDJ indicator parameters

MACD is called Exponential Smoothing Similarities and Differences**, which is developed from the Double Exponential Moving Flat**, which is composed of the fast exponential Moving Flat (EMA) minus the slow exponential Moving Flat**, and the meaning of MACD is basically the same as that of the Double Moving Flat**, but it is more convenient to read. When the MACD turns from negative to positive, it is a signal to buy. When the MACD turns from positive to negative, it is a signal to sell.

When the MACD changes at a large angle, the gap between the fast moving flat and the slow moving flat ** opens up very quickly, representing a shift in the general trend of the market.

KDJ, also known as the stochastic indicator, was first proposed by Dr. George Lane (George Lane), is a fairly new and practical technical analysis indicator, which was first used for market analysis, and was widely used for short- and medium-term trend analysis, and is the most commonly used technical analysis tool in the market.

The rules of application of the KDJ indicator.

The KDJ indicator is a three-curve that is mainly considered in five aspects when applied: the absolute number of the value of KD; the morphology of the KD curve; crossover of the KD indicator; divergence of the KD indicator; The size of the value of the j indicator.

The first parameter 12 in MACD is a fast exponential smoothing, the second parameter 26 is a slow exponential smoothing, the general calculation is fast smoothing and slow smoothing, which results in DIF, the third parameter 9 is averaged according to the value of DIF in the last 9 days, and the calculation of MACD is calculated according to 2* (DIF-DEA), which is manifested in the red and green bars.

The first parameter 9 of kdj is the number of days represented, which refers to the use of the **last 9 days** to achieve the highest and lowest price for relevant calculations, and the last two 3s are the parameter values of k and d respectively, and the calculation process is as follows:

rsv = (today's ** price - the lowest price in the last 9 days) (the highest price in the last 9 days - the lowest price in the last 9 days).

Note: The first parameter is what is, and the above calculation days are what is.

Today's K value = [1 - (1 A)] * Yesterday's K value + (1 A) * Today's RSV value.

Today's D value = [1 - (1 b)] * yesterday's D value + (1 b) * today's K value.

Note: A is the parameter of k value, B is the parameter of d, and a and b are smooth parameters.

The calculation of the last j is calculated from 3D-2K.

The curves in those charts are actually the lines of the data calculated by the indicator for each day. In fact, all indicators are just relevant statistical data applications, and their role is to conduct technical analysis based on historical relevant statistics to determine what the trend may occur in the future.

Ask the teacher, or the professor.

1. The best parameter setting of the MACD indicator: flat by fast exponential movement**.

EMA12) subtracts the slow exponential move flat** (EMA26) to get the fast DIF, and then uses 2 (the 9-day weighted move **DEA of the fast DIF-DIF) to get the MACD bar.

Reason: The meaning of MACD is basically the same as that of the double moving level, that is, the discrete and aggregate of fast and slow ** characterizes the current long-short state and the possible development trend of the stock price, which makes it more convenient to read.

2. KDJ indicators.

The optimal parameter setting: the last round of calculation period of the immature random Feng Tong value rsv, and then according to the method of smooth movement of the flat ** to calculate the k value.

D value and j value, and draw a curve chart to determine the ** trend.

Reason: Stochastic.

KDJ is generally a statistical system used for ** analysis, according to statistical principles, through a specific period (usually 9 days, 9 weeks, etc.) in the occurrence of the most, lowest and the last calculation period of the ** price.

and the proportional relationship between the three.

3. RSI indicators.

The best parameter setting: including crossover, numerical value, pattern and divergence and other aspects of the judgment principle, the use of RSI different parameter curves is exactly the same as the law of moving flat, if the short-term RSI curve with smaller parameters is located above the long-term RSI curve with larger parameters, it is currently a long market.

Otherwise, it is a short market.

Some technical indicators, simply understood, are upward crossing**, downward crossing, selling.

The MACD is known as the Similarities and Differences Shift**.

Developed from the double exponential moving flat**, from the fast exponential moving flat** (EMA12) minus the slow exponential moving flat**(EMA26) to get the fast line DIF, and the 9-day weighted moving flat **DEA of the fast line DIF-DIF gets the MACD bar overturned to do the Hui J formula, J=(7*rsv45*rsv3) rsv2-4*srv1-2*rsv0) 9. RSV number 0-4, for friends who want to draw **, KDJ is very important. So today, let's analyze what the KDJ indicator is.

And how should we master this technical indicator to improve the allowability rate of shortcut operations. First, try to embrace the wave of benefits.

The ** ranking carefully selected by the institution is newly released.

MACD is a medium and long-term indicator, KDJ is a ** indicator, and the golden cross and death cross where J and KD lines cross are buy and sell indicators. Of course, the indicator of buying a golden cross is good, but I recommend not using the indicator of selling a dead cross. There is a lag, and the stock price has fallen by the time there is a dead fork.

After the questioner's question, let's study the KDJ question in detail! The KDJ indicator is also known as the Stochastic indicator.

The constituent elements are the three old and rotten lines called kline, dline, and jline. As you can see from the diagram, the three colors K, D, and J are all different.

Among them, Kline is the fast confirmation line, DLINE is the slow main line, and the directional light and dark line is the J line. The variation of the K and D values is in the range of 0 100, while the J value may be less than 0 or greater than 100, and the range of variations is wider. KDJ is used to judge the trend of the short- and medium-term **.

Many stockholders know that it is speculation, and they pay more attention to the performance of listed companies, but they should not only examine the basic situation of the company, but also consider the technical level. Technically, many people don't know about the MACD indicator, but it's not so clear how to use KDJ.