What are the technical indicators commonly used in stock analysis?

Hello, generally speaking, we can divide all kinds of technical indicators into the following four categories, namely trend, energy, swing and market indicators. Every technical index reflects the characteristics of the stock market or individual stocks, so if you want to have a comprehensive grasp of the trend of individual stocks in the stock market, you can't limit yourself to a single index or a certain type of index.

1. Trend indicator

As we said before, the operation of the stock market has a trend. The running trend of the market or individual stocks can be divided into three types: upward trend, downward trend and sideways fluctuation trend, and the trend indicator is a digital expression reflecting the running trend of the market. Trend indicators are based on the moving average, and make buying and selling guidance according to the stage of the current trend (rising stage, platform stage and falling stage) and the different position of the current price in the trend line.

Trend indicators mainly include: moving average (MA), exponential moving average (MACD), trend indicator (DMI), momentum indicator (MTM), waterfall wiring (PBX), Baota line (TWRF) and so on. Among them, moving average and exponential moving average are the most commonly used. The moving average reflects the medium and long-term trend; The smooth average of exponential motion reflects the short-term trend.

Let's briefly introduce these two concepts, and how to use them to buy and sell stocks will be introduced in detail in the second part.

The moving average (MA) is an intuitive expression of Dow's theory. It is a technical analysis method based on Dow Jones' concept of "average cost" and adopting the principle of "moving average" in statistics, averaging the index or stock price for several days in a row, then connecting them into curves, observing the trend of the market and individual stocks, and then reflecting the future development trend of the index or individual stocks. In actual calculation, the closing price of each day is generally taken as the standard. Let's take Cn as the closing price on the nth day. (Explain the calculation method of the 5-day moving average MA5 based on the fifth day of the time period. ) The value of the 5-day moving average MA5 on the nth day is:

Connecting these values into curves every day, we can get the moving average that we often see. The exponential moving average (MACD) index was put forward by Chalar Appel. It is based on two moving averages and is a fluctuation index of moving averages.

Chalar de Appel found in his research on the moving average (MA) that the short-term moving average always converges to the long-term moving average, that is, the short-term moving average and the long-term moving average present the characteristics of mutual aggregation and separation.

Through the study of EMA, it is not difficult to find that in a wave of rising or falling market, the short-term EMA tends to quickly break away from the long-term EMA, and then when the price trend slows down, the two will gradually converge.

MACD uses this characteristic of the two moving averages to calculate the difference between the two moving averages-the positive and negative difference DIF, as the basis for judging price fluctuations.

The emergence of MACD is also due to the relative lag of the moving average. When the trend is clear, the EMA can be used to make an ideal buying and selling decision, but the EMA will often send a wrong signal when it is arranged sideways. MACD based on the principle of moving average not only retains the advantages of moving average, but also abandons the disadvantages of moving average. It is a complex index based on moving average. Because the calculation method of MACD is complicated, I won't introduce it here.

Because the formation and continuation of the trend have a long time span, whether it is a short-term trend or a medium-and long-term trend, once the trend is formed, it is very likely to continue. Therefore, the trend indicators reflecting this trend generally have stable characteristics and are not easily manipulated, so they are favored by many investors. As shown in Figure 6-8, the moving average and MACD of Huaxia Bank (600015)10-June to May 5, 20 1 1 are schematic diagrams.

Figure 6-8 The moving average and MACD chart of Huaxia Bank (6000 15) from May 20, 200511to May 2065438+5.

2. Energy indicators

The importance of trading volume is not only reflected in the attention of investors, but also in the classification of indicators. As a separate indicator category, energy indicators are centered on "transaction volume". Energy indicators are often based on the information provided by trading volume, and through certain mathematical operations, an exponential model is obtained for judgment. It is worth noting that since energy index is not a direct parameter with price as the index, it is generally necessary to make a comprehensive judgment with trend index.

Energy indicators mainly include volume (VOL), relative strength of quantity (VRSI), moving average, psychological line (PSY), energy tide (OBV) and so on. The most commonly used indicator is the turnover we mentioned earlier, so I won't go into details here.

3. Swing index

Swing index is based on statistical theory, according to the price fluctuation range in a certain period of time and the position of a certain time point in this price fluctuation range, to make the judgment of buying and selling. Swing index is mostly a short-term index, and it is an ideal practical index in a volatile city.

It is more sensitive to reflect price fluctuations and can reflect the top and bottom of price fluctuations in advance. However, in a big upward or downward trend, the swing index often appears passivation, which can't really reflect the real price trend. Therefore, combining with the trend indicators, accurately judging the current market situation is also the premise of applying swing indicators. Generally speaking, the design principle of swing index is more complicated, because it involves relevant statistical theories, and we only need to know how to use it in actual combat.

Swing indicators mainly include: random swing index (KDJ), deviation rate (deviation), relative strength index (RSI) and so on. The most commonly used indicator is the Random Fluctuation Index (KDJ). Let me briefly introduce this indicator first.

The KDJ index is produced for the deficiency of the moving average. The moving average is based on the closing price, so it can't show the real fluctuation range of a market, that is, the highest or lowest price of the day or in recent days can't be displayed on the moving average data. Dr. George Ryan (George

Lane) first recognized these shortcomings and created a new technical index KDJ. In the design process, KDJ mainly studies the relationship between the highest price, the lowest price and the closing price, and at the same time integrates some advantages of the concept of momentum, the power index and the moving average to investigate the extent to which the current price deviates from the normal price fluctuation range.

KDJ index mainly combines the concept of moving average linear speed and the concept of "equilibrium position" where prices will return to their equilibrium position in any fluctuation process. Of course, this "equilibrium position" will change with the continuous operation of the stock price. For example, in the trend of rising stock prices, this "equilibrium position" will continue to move up; In the downward trend of stock price, this "equilibrium position" will continue to move down. In the practical application of KDJ index, the short-term movement direction of individual stocks can be predicted by the separation degree and relationship of K line, D line and J line.

Figure 6-9 KDJ chart of Huaxia Bank (600015) from 20051October 20141to 2065438+5.

4. Market indicators

The market index is mainly used to count the overall operation of the market. If the above three types of indicators are applicable to both individual stocks and the market index, then the market index is tailor-made for the market (the market as a whole).

Market indicators mainly include: the comparison of the number of companies with rising A/D, the ratio of rising and falling ADR, etc. In practical application, it mainly focuses on the comparison of the number of A/D rising companies, reflecting the number of rising stocks and falling stocks in the market on that day, and reflecting the strength of the market on that day.

Risk disclosure: This information does not constitute any investment advice. Investors should not substitute such information for their independent judgment, or make decisions only based on such information. It does not constitute any trading operation and does not guarantee any income. If you operate by yourself, please pay attention to position control and risk control.