Buying the bottom when MACD divergences in the currency circle--Basic points!

The MACD indicator is the most famous trend indicator, and its main feature is robustness. Although this indicator is not overly sensitive, it has the disadvantage of being too slow for short-term purposes, but this also determines that it can be used in long periods and large amounts of data. It provides relatively stable trend direction in many market conditions. The principle of indicator divergence is the essence of the entire MACD application, and it is also where the accuracy of this indicator is high. It is subdivided into top back relaxation and bottom back relaxation. Its basic points are as follows:

1. The formation principle of divergence: It often appears after a long period of time when one side of the market has been bullish or short, because this means that one side is stronger, and in this case it is often easy to go too far. This kind of relationship between currency prices and indicators Asymmetry results in dorsal laxity!

2. The value of the origin of backrelaxation is very important, and it is emphasized that it must have obvious high (low) points! Note that the value should be taken in the same upward (downward) trend, and the origin should appear after running for a period after the highest (low) point;

Buying the bottom when MACD divergences - three common characteristics of divergence at the bottom

1. There are only three things to do. In a sharp down market, when there are two consecutive divergences after the bottom divergence from the low point, it can basically be determined that the down market is almost over. However, at this time, due to the tenacity of the short-selling power, there is often a false breakthrough downward, and the indicator will also break through accordingly. Although it is possible to penetrate the bottom of the previous two divergences, that is, there is no divergence compared to the previous two times, it is different from the initial one. The origin of the divergence still forms a divergence, and it is the third time of divergence. In terms of operation, you can boldly buy the bottom with a backhand operation. The reversal market amplitude after the triple divergence is often large and highly safe, and the late stage of the surge requires continuous and large amounts of support.

2. Principle of symmetry. In the currency market, the principle of symmetry exists widely, and MACD divergence is no exception. Generally speaking, when there is a bottom divergence, especially after multiple divergences, the market will end with a transaction or a top divergence in the currency price. Because the bottom and back slack represents excessive concentration of energy, the suppressed energy after the rebound market unfolds is prone to retaliation, and the strong inertial effect often easily causes top and back slack.

3. Morphological analysis. MACD is a trend indicator, and most of the traditional morphological analysis is gradually summarized based on trend theory. Therefore, in principle, the two have great similarities, which also determines that MACD bottom divergence can also be used in general Analyze the morphological theory, such as head and shoulders bottom, double bottom, triple bottom, arc bottom, platform bottom, etc. The commonly used evaluation theories such as measurement amplitude, resistance or support level in such morphological analysis can also be applied, top and back relaxation Use it in reverse.

The buying and selling signals sent by the market divergence

MACD is mainly used to judge the medium and long-term upward or downward trend of the general trend. When the currency price is in a market situation or the index fluctuation is not obvious, the buying and selling signals sent by MACD are not very obvious. When the currency price fluctuates greatly up and down in a short period of time, , because MACD moves very slowly, it will not immediately generate buying and selling signals for currency price changes. In reality, what I use most is to use the buying and selling signals sent by its deviation from the market to make judgments on the future trend of the market.

Use MACD to make money

Any technical tool has its unique advantages, but sometimes the advantages can easily turn into flaws, and this often becomes the starting point for bookmakers to create traps! Although the success rate of MACD backrelaxation is relatively high in application, there is also the possibility of backrelaxation trap. The main manifestations are as follows: After the origin of the bottom divergence was formed after continuous plummets, the indicator began to form a bottom divergence diagonally upward, but the currency price did not rebound because of this, but was flat or even fell, and continued after the indicator rose to the pressure level. Breakthrough downward, the bottom back relaxation trap appears! It is worth noting that the high-level bottom divergence of indicators that appears again after the divergence trap is often the real bottom. #BTC