The contrarian operating system (CDP) is a very short-term method of operation, that is, buying and selling at the same time within the day.
1. Calculation method
(1) First calculate the CDP value (demand value)
CDP=(H+L+2C)÷4
H: the highest price of the previous day, L: the lowest price of the previous day, C: the closing price of the previous day
(2) Calculate
AH ( Highest value)=CDP+(H-L) NH(near high value)=CDP×2-L
AL(lowest value)=CDP-(H-L) NL(near low value)=CDP×2-H
Then these five The numerical order is (from highest to lowest): AH, NH, CDP, NL, AL.
2. After using the principle
to find these five values, the market fluctuation of the previous day is used to make a high and low level division of today's future market. The analyst can use this high and low distinction to judge the trend of the day. The key to research and judgment is where the opening price is in the five values of CDP, because the opening price is usually formed by the compromise between the market buyers and sellers' psychological expectations of a reasonable price, which affects the trend of the day.
(1) Under the circumstance that the fluctuation is not very large, that is, the opening price is between the near-high value and the near-low value, usually traders can buy at the near-low value and sell at the near-high price. or sell at a price near the high value and buy at a price near the low value.
2. (2) In the case of large fluctuations, that is, when the opening price is near the highest value or the lowest value, it means gapping high or gapping low, which is the start of a big market, so traders can trade at the highest price. Buy at the most valuable price, and sell at the lowest price. Usually a gap, which means a strong rise or fall, should have a considerable profit.
3. Functional analysis
4. (1) CDP is most suitable for the market that oscillates up and down. Choose the range of selling high and buying low to earn short-term profits.
(2) For the market that rises and falls sharply, especially when it breaks through the resistance price and support level, in order to avoid squeezing or horizontal pressure, it is necessary to set a stop loss point to prevent sudden bullish or bearish influence. Application of
CDP indicator The
CDP indicator is a relatively unfamiliar old indicator to the majority of investors. It did not attract the attention of investors mainly because in the technical analysis software on the market now, it is not set in the static and dynamic technical columns, but in the time-sharing trend of each stock or the pens in the K line chart status or It is hidden in the transaction details, and can only be displayed by pressing the "+" or "-" key continuously when each stock is in the above state. At the same time, there is no introduction in the technical series on the market, resulting in a realm that no one cares about. In fact, the CDP technical indicator is a good short-term operation tool for selling high and buying low in a cowhide market. The difference between this indicator and other technical indicators is that there is no curve chart, but only five data of AH, NH, CDP, NL and AL. The application rule is: NL and NH are the best points for short-term entry and exit, namely: investors When you want to sell on the same day, set the price on the NH value in the CDP indicator of the stock. If investors want to buy the stock at a low price, generally setting the buying price at the NL value will be successful.
For the band operator, the AH and AL values are the conditions for entry and exit. Of course, when the stock price exceeds the AH value, the stock price will rise the next day, and when the stock price falls below the AL value, the stock price will continue to fall the next day.It has been proved from the practice of the Shanghai and Shenzhen stock markets that whenever a stock that is continuously falling, if the stock breaks through the AH value on a certain day, there is an 80% probability that it is a reversal signal. AL, the uptrend is over, therefore, the reversal signal provided by this set of data is ahead of other technical indicators. The CDP value only shows the strength of the stock price at this stage. When the stock price is higher than the CDP value of the stock, the market is strong at this stage. On the contrary, weak. This technical indicator is not only simple to use, but also has clear buying and selling points, and has a very high accuracy value.
There are quite a lot of people in the stock market and the futures market who like to do super short-term trading, and the contrarian operation indicator can be your helper in this regard.
Calculation method:
CDP=(H+L+C)/3
H: Highest price L: Lowest price C: Closing price
After obtaining the CDP value, calculate the highest value (AH), the near high value (NH), the lowest value (AL) and the nearest value Low value (NL).
AH=CDP+PT PT is the volatility of the previous day (H-L)
NH=CDP*2-L (sell point S, long profit point)
CDP
AL=CDP-PT
NL=CDP*2-H (buy point B, Short covering points)
After finding these five values, it is equivalent to classify the future market price of the day into a high and low level according to the market fluctuation of the previous day, so that traders can judge the market trend of the day.
This is the case. After the five application values of the CDP formula are calculated, it can be seen that the arrangement from the highest value to the lowest value is: the highest value (AH), the near-high value (NH), the demand value (CDP), and the near-low value ( NL) and the lowest value (AL).After
finds out these five values, it is quite similar to divide the future market price of the day into a high and low level according to the market fluctuation of the previous day. Traders can use this high and low distinction to judge the trend of the day. The determination of the opening price of
is usually formed by a compromise between the reasonable prices expected by both buyers and sellers in the market, and therefore also affects the trend of the day. Therefore, where the opening price opens the five values of CDP is a very important key to judgment.
Under the circumstance that the fluctuation is not very large, that is, when the opening price is between the near-high price and the near-low price, usually traders can buy at the near-low price and sell at the near-high price. Or buy at near-high value.
This method can be operated on both sides, but because it is a short-term entry and exit, it is impossible to close the position on the same day. If you cannot close the position at a satisfactory price, you should choose the closing price to close the position.
This is how to do it when the fluctuations are small. If volatility is high, other strategies should be employed.
When the opening price is near the highest value or the lowest value, it means gapping high or gapping low, which is the start of a big market. Therefore, traders can pursue selling at the highest value price. Usually, a gap means a front-end rise and fall, and generally speaking, there should be a considerable profit.
Comprehensive use of DMI and CDP golden combination
Faced with numerous technical indicators, investors often do not know how to choose, even if a person with a heart adopts a comprehensive measurement method, it will also cause technical indicators to conflict with each other, and they feel that they cannot find a reasonable explanation distressed. In the dazzling array of technical indicators, there are actually many indicators of research and judgment methods and effects often have some similarities.Therefore, before investors use technical indicators, they must first classify the indicators and distinguish between different types and different types of indicator groups. In order to avoid confusion in application due to too many technical indicators. Here is a list of DMI and CDP technical indicators to adapt to the scope and comprehensive application methods, in order to achieve the purpose of attracting new ideas.
DMI is a trend indicator used to identify whether the market has changed. Once the market becomes profitable, DMI will immediately lead investors to enter and remind investors to exit at the right time. However, this indicator is only suitable for the development period of market conditions, and when it is used for bullish trading, the technical indicator is slightly insufficient, while CDP is a good bullish trading indicator. The
DMI indicator contains four lines, one is positive DI and the second is negative DI. The cross signal of these two lines is to guide investors to buy and sell. When the positive DI crosses the negative DI to buy, and the positive DI crosses the negative DI to sell, this trading rule feels too fast in the application of the Shanghai and Shenzhen stock markets, and it is easy to lead into a trap. Therefore, it is not easy to use in a highly speculative market, so as not to cause harm to investors. The third line is the ADX line, also known as the direction line, which is a buying and selling line designed for operators. No matter whether the market is in a long or an short , the ADX will move upward, and whenever the ADX line is above 50, it will move downward. At a turning point, that is, when the market changes, that is, when a rising stock can be profited at this time, and a stock that has been falling continuously has reached the end, the time to buy is coming, and the accuracy is quite high. The fourth line, the ADXR line, is called the evaluation line. It is a line set for evaluating the nature of the market. Simply put, when ADXR is above 25, it means that the market is relatively active. If ADXR gradually falls to between 25 and 20 At , the market has entered a trendless state, known as a bull market.At this time, the DMI indicator should be stopped immediately, and investors should use the homeopathic operation method CDP to make profits. The
CDP indicator is a relatively unfamiliar old indicator to the majority of investors. It has not attracted the attention of investors, mainly in the technical analysis software on the market today, it is not set in the static and dynamic technical columns, but in the time-sharing trend of each stock or the division or transaction in the state of the candlestick chart. It is hidden in the details, and can only be displayed by pressing the "+" or "-" key continuously when the stocks are in the above state. At the same time, there is no introduction in the technical series on the market, resulting in a realm that no one cares about.
In fact, the CDP technical indicator is a good short-term operation tool in a cowhide market. The difference between this indicator and other technical indicators is that there is no curve chart, but only five data of AH, NH, CDP, NL and AL. The application rule is: NL and NH are the best points for short-term entry and exit, namely: investors When you want to sell on the same day, set the price on the NH value in the CDP indicator of the stock. If investors want to buy the stock at a low price, generally setting the buying price at the NL value will be successful. For the band operator, the AH value and the AL value are the conditions to guide entry and exit. Of course, when the stock price exceeds the AH value, the stock price will rise the next day, and when the stock price falls below the AL value, the stock price will continue to fall the next day. It has been proved from the practice of the Shanghai and Shenzhen stock markets that whenever a stock that is continuously falling, if the stock breaks through the AH value on a certain day, there is an 80% probability that it is a reversal signal. AL, the uptrend is over, therefore, the reversal signal provided by this set of data is ahead of other technical indicators.
The CDP value only indicates the strength of the stock price at this stage. When the stock price is higher than the CDP value of the stock, the market is strong at this stage. On the contrary, weak. This technical indicator is not only simple to use, but also has clear buying and selling points and a very high accuracy rate.
