DIF in MACD under the zero line

Graphical characteristics: (1) When the stock price rises for a long time, DIF always runs above the zero line, showing a positive number.

(2) When the stock price is difficult to reach a new high or the stock price falls below the quarterly average line, the DIF will cross the zero line and become negative.

(3) Sometimes the decline in stock prices has not yet begun, but DIF will take the lead in crossing the zero line, providing a forecast for future declines.

Market significance:

(1) The principle of smoothing moving average convergence and divergence (MACD). MACD uses two exponentially smoothed moving averages with different speeds (one fast: short-term moving average, one slow: long-term moving average) to calculate the difference between the two (DIF) as the basis for judging the trend. Then find the unit of DIF (usually 9 days) smoothed moving average, that is, the DEA line. In practical application, MACD is to use the signs of the convergence and separation of fast and slow lines to determine the buying and selling time. Due to the complexity of this indicator calculation, the calculation formula is omitted. The fast and slow lines of the MACD indicator are above the zero axis, indicating that the market is in a long market, and below the zero axis is a short market. When the fast line breaks through the slow line upwards, it is a buying opportunity, and when the fast line breaks through the slow line downwards, it is a selling opportunity. In theory, sometimes the length of the bar between the fast line and the slow line can be used to determine the short-term buying and selling opportunity (the length of the bar line depends on the difference between the fast line and the slow line). In fact, MACD, like other indicators, also has a divergence: when the stock price (index) reaches a new low, but the MACD does not hit a new low at this time, it indicates that there is a bottom divergence phenomenon and you can consider buying. When the stock price (index) reaches a new high, but the MACD does not hit a new high at this time, it indicates that there is a top divergence and you can consider selling. In addition, it is worth noting that the high MACD crosses down twice, and the stock price (index) may fall sharply, while the low two crosses up will rise sharply. MACD has a good confirmation effect on sustained trends, and the buy and sell signals are given in a timely manner, but it seems powerless for the market. The parameters of MACD are generally 12, 26, and 9 (the other MACD parameters that appear in this article are the same as above).

(2) MACD analysis of stock price trends has certain blind spots, but we combine the principle of three dead ends peaking to make up for each other, confirm each other, and improve the ability to judge the top.

(3) Under normal circumstances,DepuThe MACD moves according to the price average, but sometimes there are leading or lagging phenomena. We use the characteristics of the DIF to cross the zero line, and sometimes we can predict the decline in advance.

How to operate:

(1) Sell the stock when the DIF crosses the zero line.

(2) When DIF crosses the zero line and waits for the triple dead fork to peak, sell stocks on high.