Zhang Lihui shared a detailed explanation of commonly used technical indicators today:#热门话题 #BTC #ETHFI， $BTC $ETH $SOL

KDJ pattern, MACD diagram and EMA moving average are commonly used tools in technical analysis to predict market trends and develop trading strategies. The following is Li Hui's detailed explanation of these three concepts.

First, let’s talk about the KDJ form. The KDJ indicator is a technical indicator used to measure overbought and oversold conditions in currency prices or other trading assets. It consists of three lines: K line, D line and J line. The K line represents the ratio of the closing price to the lowest price in a period of time in the recent period. The D line is a smooth line calculated based on the K line. The J line is calculated based on the values ​​​​of the K line and the D line. The value of the KDJ indicator usually fluctuates between 0 and 100. A value above 80 indicates overbought, and a value below 20 indicates oversold.

The illustration of the KDJ pattern can be displayed through the KDJ line of the currency you want to trade. When the K line crosses the D line from below and the value of the KDJ indicator is lower than 20, it means that the currency price is oversold, and this is a good opportunity to buy. On the contrary, when the K line crosses the D line from above and the value of the KDJ indicator is higher than 80, it means that the currency price is overbought and it is a good time to sell.

Next is the MACD diagram. MACD (Moving Average Convergence/Diffusion Indicator) is a trend indicator that measures price fluctuations. It consists of two lines and a histogram: DIF line, MACD line and histogram. The DIF line is the difference between the short-term exponential moving average and the long-term exponential moving average, while the MACD line is the exponential moving average of the DIF line. The histogram represents the gap between the DIF line and the MACD line.

MACD chart can judge the market trend by observing the relationship between DIF line, MACD line and histogram. When the DIF line crosses the MACD line upwards and the histogram turns from negative to positive, it means that the currency price is in an upward trend, and this is a buy signal. On the contrary, when the DIF line crosses the MACD line downwards and the histogram turns from positive to negative, it means that the currency price is in a downward trend, which is a sell signal.

Finally, there is a diagram of the EMA moving average. EMA (Exponential Moving Average) is an indicator that smoothes currency price movements. It calculates the average price of the currency price in the recent period based on a certain weight coefficient. Compared with other moving averages, EMA is more sensitive and can respond to price changes faster.

The EMA moving average diagram can be used to judge the market trend by observing the relationship between the coin price and the EMA line. When the coin price is above the EMA line and the EMA line is on an upward trend, it means that the coin price is on an upward trend, which is a buy signal. On the contrary, when the coin price is below the EMA line and the EMA line is on a downward trend, it means that the coin price is on a downward trend, which is a sell signal.

To sum up, Lihui believes that KDJ patterns, MACD diagrams and EMA moving averages are all important tools for technical analysis and trading decisions. By understanding and using these tools, traders can more accurately predict market trends and make appropriate trading decisions. However, Lihui reminds everyone that these tools are only auxiliary tools and cannot be used to determine trading strategies alone. Comprehensive analysis needs to be done in conjunction with news and other factors.

I Li Hui interprets world economic news and analyzes the general trends of the global currency circle. During my further studies in the United States, I conducted in-depth research on BTC, ETH, LTC, DOT, EOS, BNB, SOL and other currencies. For all currency friends who do not know how to operate, We are welcome to follow the public account: Zhang Lihui