The method of using technical indicators to select stocks is as follows: First , the moving average system, the weekly line focuses on the 60-week moving average. The second is the trading volume . Stock indicators with enlarged trading volume have more room for improvement. The third is the watershed. The dividing ridge indicator for the bull-bear conversion is EXPMA. The fourth is the buying point and selling point. When buying, refer to the 60-minute CCI indicator . The fifth is to set the combination parameters, which is conducive to grasping the trading point of the band. The sixth is the application of trend indicators. The indicators of bear market and bull market can be different.
How to use technical indicators to select stocks in the stock market
Stock selection by technical indicators is to select stocks by using a collection of stock data calculated by mathematical formulas .
- Moving Average System
The moving average system is one of the most important technical indicators. The daily line pays attention to the annual line, and the weekly line pays attention to the 60-week moving average. Whether it forms support for the stock price. Generally speaking, stocks with stock prices that have accumulated at the bottom and are effectively at the 60-week moving average can be judged as mid-line bull stocks . Selecting the right price to participate will have stable returns.
- Volume
The trading volume is the driving force for the stock price to rise. Even if the stock without bottom volume rises temporarily, most of its fates come from and go back. In addition, there is a high degree of correlation between stock price, trading volume and indicators, that is, stock indicators with enlarged trading volume and high stock prices at the same time run at a slower speed, in other words, there is a large room for growth; the kind of stock indicators without trading volume matching , but the running speed is very fast. Once the indicator is over, the stock price will peak, and such a stock has no room for improvement.
- Watershed
The dividing ridge indicator that distinguishes the bull-bear conversion is EXPMA. This indicator has all golden crosses on the daily, weekly and even monthly lines. It is the only clearly distinguishable common feature of every big bull stock so far. Looking for the stock price to stand on the 60-week moving average, the individual stocks with the golden cross of the indicator upwards can safely carry out the band operation . On the contrary, the main feature of the bear stocks is the high point of the stock price rebound, which is always suppressed by the indicator, all the way down, unable to look up.
- Buying and selling points
Many non- strong stocks show a rising trend of ups and downs. When buying, you can refer to the 60-minute CCI indicator. This indicator can be bought when the stock price has an inflection point. When selling, refer to the 60-minute or 30-minute MACD. , DMA indicators , when these two indicators cross downward, it indicates that the stock price will enter a state of consolidation. It is worth reminding that some stocks adjust downwards in these two time- sharing indicators , but the stock price remains sideways and does not fall. This is a sign of a high degree of capital control during the session. Once the moving averages of the time-sharing indicators are glued, the stock price will rise again. time.
- Set the combination parameters
Setting the combined parameter system has a certain auxiliary role in grasping the buying and selling points of the band. If you want to learn from the application, you must first download a software that can accommodate a variety of parameters. The main set data is (daily line): volume setting DMA is set to 7, 25; SLOWKD (slow KD) is set to 9, 3, 3, 5; MTM (power indicator) is set to 9, 21; SAR is set to 4, 4.
When three or more of the indicators go up, the stock will rise; when three or more of the indicators go down from a high level, it indicates that the stock has entered an adjustment. You should also be flexible when using these indicators, focusing on changes in volume and moving average systems.
- Application of trend indicators
Each software has dozens or even hundreds of technical indicators. In fact, as long as you understand and master several of the main indicators, it is enough to deal with stock speculation . It should be reminded that the indicators used in bear and bull markets can be different. For example, in the bear market, the rebound operation focuses on the KDJ indicator . As long as the daily line or the 60-minute KDJ indicator, once it hits the top, the rebound will definitely end. The bull market does not need to care about the KDJ indicator at all. On the way of the stock index or stock price rising, KDJ will continue to die or passivate, but it does not affect the stock index or stock price to make new highs. In the bull market, the indicator with a high degree of correlation with the stock index or stock price is MACD. As long as the daily MACD and trading volume do not have a dead cross, you can boldly go long.