Intersection between BIAS lines in different periods
On most stock market analysis software, the BIAS indicator is mainly composed of three BIAS curves in different periods (generally short, medium and long). The research and judgment of the BIAS indicator is mainly based on the movement and intersection of the three short, medium and long curves. Taking the daily BIAS indicator as an example, the specific analysis process is as follows: 1. When the short, medium and long-term BIAS curve always revolves around the 0-degree line and moves up and down within a certain narrow range, it indicates that the stock price is in a consolidation pattern. At this time, investors should wait and see.
2. When the short-term BIAS curve begins to break through the long-term BIAS curve at the bottom, it indicates that the weak consolidation pattern of the stock price may be broken, and the stock price will move upward in the short term. Investors can consider a small number of long-term positions.
3. When the short-term BIAS curve breaks through the long-term BIAS curve and moves upward rapidly, and the medium-term BIAS curve also breaks through the long-term BIAS curve, it indicates that the mid- to long-term rise in stock prices has begun, and investors can increase their efforts to buy stocks.
4. When the short, medium, and long-term BIAS curves begin to break away from the narrow range of consolidation in the early stage and move upward rapidly at the same time, it indicates that the stock price has entered a short-term strong upward market, and investors should firmly hold their shares for growth.
5. When the short-term BIAS curve begins to turn downward at a high level after a period of rapid upward movement, it indicates that the stock price has risen too fast in the short term and will begin to adjust in the short term, allowing investors to sell stocks in the short term.
6. When the medium-term BIAS curve also begins to turn downward at a high level, it indicates that the short-term rise in stock prices may come to an end, and investors should sell stocks in the mid-term.
7. When the long-term BIAS curve also begins to reverse at a high level, it indicates that the short-term rise in stock prices has ended, and investors should clear their positions and leave the market.
8. When the medium and long-term BIAS curve moves downward from a high level at the same time, it indicates that the downward trend of the stock price has formed, and investors should firmly hold the currency and wait and see.
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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.
