#多军的反击 What is indicator resonance? It refers to the resonance effect formed when multiple technical indicators send out similar buy or sell signals at the same time in technical analysis. This resonance can enhance the credibility of trading decisions because multiple different analysis tools give the same market direction.
How indicator resonance helps trading:
1. Improve the reliability of signals: A single indicator may sometimes generate misleading signals, especially in a volatile market. When multiple indicators point to the same direction at the same time, the accuracy of the signal can be increased. For example, when indicators such as moving average indicators, MACD and RSI all send out buy signals at the same time, the credibility of such signals will be higher.
2. Filter false signals: The market is full of noise, and a single indicator may be affected by short-term fluctuations and give wrong signals. By combining the resonance of multiple indicators, you can effectively filter out some false signals and avoid unnecessary losses.
3. Confirm the trend: Indicator resonance can help confirm whether the trend is strong. For example, if the moving average system shows an upward trend, the MACD bar is enlarged, and the RSI is in a strong range (such as above 50), these resonance signals can further confirm the strength of the upward trend.
4. Develop clearer entry and exit strategies: Through multi-indicator resonance, traders can determine clearer buying or selling points. For example, when the support level resonates with technical indicators such as the lower track of the Bollinger Bands, the oversold area of the RSI, etc., it may be a good time to buy.
Commonly used indicator combination examples:
- Moving average + MACD: The moving average crossover resonates with the MACD crossover to confirm the trend reversal.
- RSI + Bollinger Bands: When the price touches the upper or lower track of the Bollinger Bands, and the RSI enters the overbought or oversold range, resonance is formed.
- Support/Resistance + K-line pattern: Support/resistance levels combined with K-line patterns (such as hammer lines, engulfing patterns, etc.), plus changes in trading volume, are also a resonance phenomenon.
Notes:
Although indicator resonance can increase the success rate of transactions, it does not guarantee that every transaction will be successful. Therefore, risk control (such as stop loss) is still crucial, and avoid over-reliance on too many indicators to avoid "excessive indicators" affecting decision-making.
