Stock Exchange and Market Analysis
Technical Analysis (20)
Counterclockwise curve ( also known as the inverse clock curve ) is an important indicator in the study of the relationship between stock price and price , the so-called "novice price, veteran look" , the first price line points to the price-volume relationship is how important it is , once the cross-amplification, it could be a leading indicator of prices . today to discuss counter-clockwise curve is a mathematical relationship between the coordinate axis showing the quantity and price , the vertical axis is used representative of the stock , the horizontal axis represents the volume , both the coordinate point is the intersection, and the amount used of the divalent cycle parameters generally . 5 days and 25 shares day moving average and the moving average as the focus of the quantitative analysis of the amount , and The drawn coordinate point connection diagram ( according to historical experience ) will show the long and short trend of the inverse clock cycle , which can be divided into eight stages as shown in Figure 1 :
FIG A. Volume Relationship
1. Price increase (F->G) : When the market bottomed out, although the price has not yet risen, the volume has been enlarged, revealing that many parties are preparing to start.
2. Increase in price (G->H) : The long-term main rise, the price and price are the necessary conditions for a strong rise.
3. The price increase is flat (H->A) : When the price continues to rise, but the volume has no longer increased, it shows a steady state, indicating that the market momentum is temporarily paused, and the subsequent volume and price changes remain to be seen . It is appropriate to wait and see . According to the concept of volume first price If the transaction volume increases again, it means that the kinetic energy is restored, and a new wave of upswing can be started. On the contrary, the volume of the contract is shrinking. This is a warning signal and will enter the next stage .
4. Price increase and contraction (A->B) : The price increase is a very obvious divergence between the volume and price. The upswing lacks sufficient kinetic energy to push up, and the bulls are about to end , and they are beginning to enter a consolidation pattern .
5. Price sizing (B->C) : For the consolidation pattern , the price will not rise at this time, and the trading volume will continue to shrink. The head is set to enter the stage of leading the short.
6. The drop in price reduction (C-> D) : fall in price and volume, the decline was officially launched , into the main fall short segment.
7. The price drop is flat (D->E) : When the price continues to fall and the trading volume is stable, it implies that the momentum will stabilize and become a turning point for the short market; if the trading volume continues to shrink, the downtrend will reopen, otherwise , there is a chance to enter the next stage.
8. The increase in price drop (E->F) : In the case of an oversold price increase, the willingness to market dips has increased, and the market is waiting for the price to stop falling, and the next stage is brewing. Long loop.
Next, let us according to counter-clockwise curve to import mathematical formulas Excel spreadsheet :
The PMAN t : of t Day N day simple moving average
PMAN t = (P t + P t-1 ... + P t-N + 1 ) / N
P t : the closing price of the day of t
N = counterclockwise curve calculation cycle
VMAN t : N day simple moving average amount of the day of t
VMANt = (Vt +Vt-1…+ Vt-N+1) / N
V t : volume on day t
Usually, the short-day period N is generally set to 5, and the medium-long period is set to 25. Using Excel 's scatter plot to substitute the above calculated values , you can get a counterclockwise graph ( Figure 2 ).
Figure 2 : Counterclockwise curves on the 5th and 25th
Since the single technical indicator is more likely to be distorted , it is recommended to use the psychological line indicator (PSY, Psychological Line, reference Ref.1) to improve the accuracy and clearly indicate the head and bottom . Although the above is the general rule of entering and exiting stocks , However, due to the different stocks of stocks , it is better to observe the stock price candlestick chart , RSI indicator, etc. of the target for at least one year , and then make appropriate corrections against the technical indicators . Finally, in order to facilitate the reader to use the counterclockwise curve , the author still Taking Juyang as the template, we continued to produce analytical samples in Excel format for readers' reference :
template20.xlsx
In addition to this sample " historical stock price " provides spreadsheet . 5 May and 25 May counterclockwise outer curve , also made available 12 is day and 24 PSY day (PSY) reference index , and the second spreadsheet " stocks chart " provided candlestick graph , volume , PSY psychological line and counterclockwise graph for reference . if left error, please also feel free to correct me . Thank you !In addition , the author made EXCEL spreadsheet for various indicators (moving average , RSI, BIAS, Stochastic KD line, William indicator , MACD, CDP and Bollinger band) for stock analysis , and further produced candlestick charts and other technical indicators on the same chart , interested readers can refer to Ref.2.
Reference (Ref):
1. Using spreadsheet to produce PSY indicators (Psychological Line)
2. Investment Financial Notes - Stock Technical Analysis
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