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Use the MACD indicator to capture the best selling point skills

2022-03-09
3399
Adjust the relevant parameters of MACD

Set the MACD's fast EMA parameter to 8, the slow EMA parameter to 13, and the DIF parameter to 9. The moving average parameters are 5, 10, and 30, respectively. After setting the parameters, it is to find the selling point. Since there are many selling points for a stock, here are two of the most effective and commonly used top escape techniques:
The first selling point or relative top

Its meaning refers to a relatively high point formed by the stock price going sideways after a sharp rise. Investors, especially those with a large amount of capital, must sell at the first selling point or lighten their positions. The technique for judging the establishment of the "first selling point" is "the stock price is sideways and the MACD is sold with a dead cross", that is to say, when the stock price goes sideways after a continuous rise, the 5-day and 10-day moving averages have not yet formed a dead cross. However, MACD takes the lead in the dead fork, and the day of the dead fork is the time when the "first selling point" is formed, and it should be sold or reduced.

Void selling point or absolute top

After the formation of the first selling point, some stocks did not fall sharply, but pretended to break up to cover shipments after the callback, and the main bulls made the last advance before making shipments, also known as the virtual surge. At this time The high point formed is often the highest point of a wave of bull market, so it is also called the absolute top. If you cannot escape smoothly at this time, the consequences will be disastrous.

The technique for judging the establishment of an absolute top is "price and MACD divergence and sell", that is, when the stock price rises and reaches a new high, the MACD cannot simultaneously reach a new high, and the trend of the two deviates, which is an obvious signal that the stock price has peaked. It must be stated that when selling stocks at the absolute top, you must not wait for the MACD to be dead before selling, because the stock price has fallen a lot when the MACD is dead, and you must refer to the K-line combination to sell stocks at the top of the virtual wave.

Generally speaking, it is an excellent time to sell if there is a "high open and low Yinxian" or "long lower shadow daily limit Yangxian" during the rapid pull of virtual waves.

Finally, it should be reminded that due to the hysteresis of the MACD indicator, using MACD to find the best selling point and escape from the top is especially suitable for those stocks that have risen sharply and become the top of the platform, and is not suitable for those stocks that have fallen sharply. In addition, most of the above two points appear after the stock has risen sharply, that is to say, it appears after the main rise of the stock. If a stock has not risen sharply, and there is no trend of the main rise, then do not use the above method.

In actual investment, the MACD indicator not only has the functions of bottom-hunting (deviation is the bottom), capturing extremely strong rising points (MACD buying twice in a row), and capturing the "end point of wash-off" (up and down divergence buying), so that you can do your best Enjoy the fun of rising after buying. At the same time, it also enables you to capture the best selling point, help you escape from the top, and let you enjoy the feeling after the harvest. Here's how to use MACD to capture the best selling points:

Adjust the relevant parameters of MACD

Set the MACD's fast EMA parameter to 8, the slow EMA parameter to 13, and the DIF parameter to 9. The moving average parameters are 5, 10, and 30, respectively. After setting the parameters, it is to find the selling point. Since there are many selling points for a stock, here are two of the most effective and commonly used top escape techniques:
The first selling point or relative top

Its meaning refers to a relatively high point formed by the stock price going sideways after a sharp rise. Investors, especially those with a large amount of capital, must sell at the first selling point or lighten their positions. The technique for judging the establishment of the "first selling point" is "the stock price is sideways, the MA

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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