activity
Index, abbreviated as DMI, is a technical index that provides a basis for judging the trend by analyzing the changes in the equilibrium point of buyers and sellers in the process of stock price rise and fall, that is, the changes in the strength of both long and short sides are affected by price fluctuations, and there is a cyclical process from equilibrium to imbalance.
The basic principle of DMI index is to find out the role of the stock price in the process of rising and falling, judge the long and short power, and then find the equilibrium point of buyers and sellers and the cyclical process of stock price fluctuation under the interaction of both parties. In most indicators, different analysis data are calculated according to the trend of daily closing price and cumulative ups and downs, but the disadvantage is that the fluctuation range between daily high and low points is ignored.
For example, the two-day closing price of a stock may be the same, but the fluctuation range on one day is not large, and the fluctuation range of the stock price on the other day is above 10%, so the analytical significance of the market trend in these two days is definitely different, which is difficult to show in most other indicators. DMI index takes into account the amplitude factor of daily fluctuation, so as to reflect the market trend more accurately and better predict the future development and changes of the market.
Use of DMI indicator:
Usage: When the market trend is obvious, the index effect is ideal.
PDI (rising direction line)
Descending direction line
Trend average
1.PDI line breaks through MDI line from bottom to top, indicating that there are new bulls entering the market, which is a buy signal;
2.PDI line falls below MDI line from top to bottom, indicating that there are new short positions entering the market, which is a selling signal;
3. when 3. ADX value continues to be higher than the previous day, and the market will maintain the original trend;
4. Number four. ADX value drops below 20, and the market atmosphere is consolidation when moving horizontally;
5. when 5. ADX value changes from an upward trend to a downward trend, which indicates that the market is about to reverse.
Parameters: n Statistics days;
M
Interval days, generally14,6.
For details, you can refer to the relevant book system, and at the same time use the simulated stock market to practice, so that you can integrate theory with practice and master skills quickly and effectively. At present, Niu Gubao's simulated stock market is not bad, and there are many indicators to guide. Each indicator lamp has detailed instructions for use, which is very helpful to use. I hope I can help you, and I wish you a happy investment!