The most widely used futures technical indicators: moving average, stochastic index KD line, relative strength index, Bollinger channel, moving average divergence indicator, golden section, MovingAverage, STC, RSI, Bull, MACD, ibonacci.
1. Moving Average (Moving Average)
The moving average is the line drawn by averaging the closing prices of the past several periods. Unlike candlestick charts, it more reliably reflects price trends.
The following are 2 different moving averages:
simple moving average (SMA) - the simple moving average is to add up the closing prices in several (n) periods (such as 5 or 10 minutes, every day, etc.), and then divide With the total period n, the average value of the nth period is obtained. Then mark the average value of each period on the graph and connect them with a curve to obtain the average line of n periods.
Smoothed Moving Average (EMA) – Since the moving average is a lagging indicator, in order to be closer to the market trend, the smoothed moving average gives more weight to recent data when calculating the average. In this way, the trend of the market can be seen earlier.
Moving averages have many uses, mainly for identifying/confirming trends, as well as identifying/confirming resistance and support levels. For example, if the fast line exceeds the slow line upwards, it is called a "golden cross", which is a buy signal. When the fast line crosses the slow line downward, it is called a "dead cross", which is a sell signal.
2. Stochastic Index (STC)
The Stochastic Index is also known as the KD line. It measures the position of the closing price between the highest price and the lowest price range to judge the trend and enter and exit the market point. The random index coordinates are in the scale range of 0-100. The K line indicates the percentage of the closing price to the highest price and the lowest price within a certain period of time, for example, 20 indicates that the price is at the 20% position in the most recent period. The D axis averages the K axis.
The specific mathematical formula of the stochastic index (KD line) is relatively complicated, but its application is relatively simple and intuitive. The stochastic index can help us:
Judging the trend:
If the index is above 80, it means a strong upward trend, and the market is in the so-called "overbought state"; if the index is below 20, it is a strong downward trend, and the market is in the so-called "oversold state" ".
Judging buying and selling signals:
1. The K line is higher than the D line, but falls below the D line in the overbought area, which is a sell signal (dead cross)
2. The K line is lower than the D line, but breaks upward in the oversold area Line D is a buying signal (golden cross)
3. Lines K and D cross more than twice consecutively in the high price area, which is a selling signal
4. Lines K and D cross more than two times in a row in the low price area, indicating a buy Incoming signal
5, when the K, D line deviates from the price trend, it is a reversal signal