Stock Technical Indicator Analysis: How to use the CDP indicator to find intraday buying and selling points

CDP indicator, also known as the counter-market operation indicator, is to reflect the short-term in and out of the practice, is in a day at the same time to buy and sell or sell and buy, the calculation method is CDP = (H + L + C * 2) ÷ 4 (H: the previous day's highest price, L: the previous day's lowest price, C: the previous day's closing price).

With the previous day's market fluctuations to the future of today's market to do a high and low level of division, analysts can use this high and low distinction to determine the trend of the day. The key to research and judgment is the opening price in the CDP five values of which position, because the opening price is usually formed by the market buyers and sellers psychological expectations of the reasonable price of the compromise, affecting the trend of the day.

(1) in the case of fluctuations is not very large, that is, the opening price in the near high value and near low value between, usually traders can buy in the near low value of the price, and in the near high value of the price of the sale; or in the near high value of the price of the sale, near low value of the price of the purchase.

(2) in the case of large fluctuations, that is, the opening price of the market opened at the highest value or the lowest value of the neighborhood, means that the short jump open high or short jump open low, is the start of a big market launch, so traders can be in the highest value of the price of the pursuit of buying, the lowest value of the price of the pursuit of selling. Usually a short jump, means a strong up and down, should be quite profitable.