The editor has already talked a lot about the divergence of MACD before, so today I will tell you the application of MACD divergence: MACD divergence sells at a high level, low divergence buys the bottom !
MACD divergence
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 As the decline trend appears, corresponding selling opportunities are formed. It can be said that the DIF line has a divergence pattern after the stock price has risen sharply, which is a typical selling point opportunity. The market has not yet developed to the moment when the stock price is declining at an accelerated decline, so it can only be said that the divergence is not serious enough. Usually, after a significant divergence occurs, the price will decline.
Pattern characteristics:
1. The top pattern of the sky appears: In a bull market, if the top pattern of the sky appears, we can confirm that the stock price has successfully peaked. At this time, it is a better opportunity to sell high trading.
2. DIF line high divergence: DIF line divergence during the appearance of the sky top, and the divergence pattern is a signal to confirm the selling point. During the period when the stock price hit a new high, we can see that the DIF line can no longer break through the previous high, indicating that the MACD indicator peaked first, indicating that the stock price is about to fall sharply.
3. The stock price has a sell-down trend: According to the logic of the huge peak and the MACD divergence suggesting a selling point, the stock price will have a significant sell-down trend. The price decline is large, reaching 50%.
Figure 1-15 Air China Daily K-line chart
Operation tips:
1. From the appearance of the top pattern of the huge volume: After the volume at the T position reaches the huge volume, although the stock price reaches the highest closing price at the D position, this is a situation where a large number of chips turn around, which means that the stock price has already reached the peak signal.
2. From the perspective of the high divergence of the DIF line: the DIF line rebounded at the G1 position, but did not exceed the previous G position high point, indicating that the top pattern indicated by the MACD indicator has appeared. Divergence and huge tops are formed synchronously, which is a signal to consider selling stocks.
3. Judging from the stock price selling trend: After the decline occurs, the stock price plummeted from the D position to the low point of the D1 position in one month, with a drop of more than 50%. It can be seen that the selling point of divergence reversal prompt cannot be ignored.
We see that after the DIF line diverges from the stock price at a high level, the indicator quickly enters a unilateral decline. The DIF line fell below the 0 axis at the C position, and the pullback trend still has not ended. In the end, the DIF line has been significantly lower than the 0 axis, which means that the stock has entered a bear market.
MACD divergence at low
When the stock price appears at the bottom of the volume in the downward trend, let’s take a look at the performance of the MACD indicator and find that the divergence pattern of the indicator appears. The DIF line of the MACD indicator forms a bottom divergence from the stock price, and the corresponding bottom-buying opportunity appears. After confirming the buying point of bottom divergence, we can see that the price will indeed achieve a certain increase during the rebound.
Pattern characteristics:
1, ground volume bottom pattern appears: In a bear market, if the top pattern of ground volume appears, we can confirm that the stock price has successfully bottomed out. At this time, it is a better opportunity to buy low-buy trading.
2. DIF line low divergence: The DIF line forms a divergence during the occurrence of the ground volume bottom, and the divergence pattern is a signal to confirm the buying point. During the period when the stock price hit a new low, we can see that the DIF line can no longer fall below the previous low, indicating that the MACD indicator bottomed out first, indicating that the stock price is about to rebound sharply.
3. The stock price rebounds: According to the logic of bottoming out of the ground volume and MACD divergence prompting the buying point, we can see that the stock price has seen a significant rebound trend. The price rebound trend is very strong, and the stock price can increase by more than 30%.
Figure 1-16 Bailong Oriental daily K-line chart
operation tips:
1. From the appearance of the ground volume bottom pattern: As shown in Figure 1-16, we can see that during the bottoming of the stock price at the D position, the volume energy has reached the ground volume state at the W position. When the price continues to fall back to the low point of the D1 position, the volume of the W1 position can be lower.
2. From the perspective of the low divergence of the DIF line: we see that the DIF line rebounded from the B position to the high of the B1 position, which obviously forms a bottom divergence with the stock price that hit a new low, indicating that the stock has bottomed out.
3. Judging from the rebound trend of the stock price: After the price stabilizes from the D1 position, the stock price rebounds to the high point of the G position. The short-term increase in stock prices has reached as high as 40%. It can be seen that trading opportunities in the rebound trend cannot be ignored, especially after the indicator divergence, we can boldly buy stocks and wait for profit.
After the MACD indicator diverges from the stock price at a low point, there is a lot of room for price recovery during the technical rebound. If we use a certain amount of funds to participate in such a rebound, even if some losses occur during the stock price decline in the previous period and the price rebounds as high as 40%, we can recover the losses and expand the profit space.
Do you want to know the skills of buying at the bottom, stop loss, unblocking the condom, and escaping the top? Welcome to follow the official account Yuesheng Guide (yslc688) to view!
(This information is for reference only and does not constitute investment advice. It should be evaluated carefully when investing)
