General Evaluation Criteria for W% R Indicators
The general evaluation standard of W% R index mainly revolves around the numerical size of W% R and the shape of W% R curve. First, the size of W% R value
Like the KDJ indicator, the value range of W% R is 0-100. The difference is that the W% R indicator has a top of 0 and a bottom of 100.
1. When W% R is in the range of 20-0, it is the overbought area of the W% R indicator, indicating that the market is overbought and the stock price has entered the top and can be considered to sell. The horizontal line of W% R = 20 is generally regarded as the selling line.
2. When W% R enters the 80-100 range, it is the oversold area of the W% R indicator, indicating that the market is oversold and the stock price is near the bottom. Consider buying. W% R = 80 horizontal line,CBCXforeign exchangeIt is generally regarded as a buying line.
3. When W% R is in the range of 20-80, it indicates that the market is temporarily balanced, and the stock price is in a sideways consolidation. You can consider holding or holding the currency to wait and see.
4. In specific combat, when the William curve breaks through the 20 overbought line and enters the overbought zone, it indicates that the stock price has entered a strong upward market. This is to remind investors to pay close attention to the future trend of the market. Only when the W% R curve breaks through the 20 line again will it provide investors with an early warning and provide reference for investors' buying and selling decisions. Similarly, when the William curve breaks through the 80 oversold line and enters the oversold zone, it indicates that the strong decline in stock prices has eased, which also reminds investors to prepare for building positions. Only when the W% R curve breaks through the 80 line again will investors really buy in the short term.
The shape of the W% R curve
1. When the W% R curve starts to climb up from the oversold area and exceeds the buy line of 80, it indicates that the market may break through upwards, which is a signal to start buying.
When the W% R curve starts to fall from the overbought zone and falls below the selling line of 20, it indicates that the market may reverse downward, indicating that it is a signal to start selling.
3. When the W% R curve breaks through the long-short balance line of 50 from the oversold area, it indicates that the stock price is rising strongly, and you can consider buying up the ante in the short term.
4. When the W% R curve breaks through the long-short balance line of 50 from the overbought area, it indicates that the stock price has fallen strongly, and you can consider selling up the ante in the short term.
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.
