MACD (Moving Average Convergence DivergenceNintendoswitchctrMoving average convergence divergence index) is one of the technical analysis tools commonly used by investors in the stock market. it judges the trend and possible turning points of stock prices by calculating the difference between short-term and long-term moving averages. This paper will discuss the relationship between MACD index and stock price, and analyze how to use MACD index to make stock investment decision.
The composition of MACD Index
The MACD index is mainly composed of three parts: DIF (deviation), DEA (signal line) and MACD histogram. DIF is obtained by calculating the difference between the 12-day moving average and the 26-day moving average; DEA is the 9-day moving average of DIF; and the MACD bar chart shows the difference between DIF and DEA.
The relationship between MACD Index and Stock Price
oneNintendoswitchctr. When the DIF line crosses the DEA line from the bottom up, forming a "golden fork", indicating that the stock price is likely to rise.
twoNintendoswitchctr. When the DIF line crosses the DEA line from top to bottom, forming a "dead fork", indicating that the stock price may fall.
3. The enlargement and reduction of MACD bar chart can also reflect the trend of stock price. When the MACD bar chart is gradually enlarged, it shows that the upward momentum of the stock price increases; when the MACD histogram gradually shrinks, the upward momentum of the stock price weakens.
Limitations of MACD indicators
Although MACD index has high application value in stock investment, it also has some limitations. First of all, the MACD index is a lagging indicator, which reflects the past price trend and can not predict future price changes. Secondly, the MACD index is easily affected by market noise, resulting in misjudgment. Therefore, when using MACD indicators, investors need to combine them.NintendoswitchctrHe uses technical analysis tools and fundamental analysis to make more accurate investment decisions.
Application example of MACD metrics
The following is an example of using MACD indicators to make stock investment decisions:
Date stock DIF DEA MACD histogram investment decision 2023-03-01 100 yuan 532 wait-and-see 2023-03-02 102 yuan 642 buy 2023-03-03 105 yuan 7 52 hold 2023-03-04 103 yuan 660 sellIn the above table, when the MACD line passes through the DEA line from the bottom up to form a "golden fork", and when the MACD bar chart is gradually enlarged, investors can choose to buy; when the DIF line passes through the DEA line from the top down to form a "dead fork", and the MACD bar chart gradually shrinks, investors can choose to sell.
In a word, MACD index is an easy-to-use and widely used technical analysis tool, which can help investors to judge the trend and possible turning point of stock price. However, when using MACD indicators, investors need to pay attention to their limitations and combine other technical analysis tools and fundamental analysis to make more accurate investment decisions.