4 Important Indicators on moomoo to show whether to buy/sell a stock
There are many indicators which are placed below the stock within moomoo. how to use these indicators to decide the position on a stock. Activate the bollinger bands(boll), macd and kdj indicators shown below the stock graph. Select daily, weekly or monthly graph depending on how long you are going to hold your position. Look for these factors.
1. Gaps on candles. Gaps are one of the major factor for trader, it's the number one trading rule that every gap is closed in future whether its upward or downwards. In the above graph there are 3 gaps. which is already indicated by moomoo interface. These gaps will be closed that means stock is more likely to go upwards in few days.
2. Bollinger bands. Bollinger bands shows the upper and the lower support levels. If the stock price crosses the support levels such as in the figure above, it's very likely to get corrected(in this example above the stock might go up because it crossed the lower band) within the bands.
3. MACD is very complicated one but very useful. In simple terms if the red and blue lines are about to intersect, then there is a reversal of position. In the above case it will intersect in few days to make an upward trend. Another indication in macd is the volume, the sell volume will reach to a peak below the graph where the buyers will overtake the volume and you will see a decreasing red volume below graph. In above graph it seems that the peak point is today or is in few days.
4. KDJ is one of the most Important indicator because it can show you the overbought or oversold level of a stock.
K >80 shows the stock is overbought
d<20 shows the stock is oversold
thus from the above graph we can say that Adobe stock is oversold and soon buyer/institutions will jump in to buy the stock.
2. Bollinger bands. Bollinger bands shows the upper and the lower support levels. If the stock price crosses the support levels such as in the figure above, it's very likely to get corrected(in this example above the stock might go up because it crossed the lower band) within the bands.
3. MACD is very complicated one but very useful. In simple terms if the red and blue lines are about to intersect, then there is a reversal of position. In the above case it will intersect in few days to make an upward trend. Another indication in macd is the volume, the sell volume will reach to a peak below the graph where the buyers will overtake the volume and you will see a decreasing red volume below graph. In above graph it seems that the peak point is today or is in few days.
4. KDJ is one of the most Important indicator because it can show you the overbought or oversold level of a stock.
K >80 shows the stock is overbought
d<20 shows the stock is oversold
thus from the above graph we can say that Adobe stock is oversold and soon buyer/institutions will jump in to buy the stock.
Average oscillators are also great indicators when it comes to short term trading. There are many average moving indicators, also provided by moomoo which shows the average line to trace the trend of a stock. The stock is more likely to follow the trend average line with a very less chance of going away from it. But the more bigger your graph sample size is the more correct your interpretation will be. That's why I believe in long term trades, because they are more likely to be correct when you use these indicators.
hope it will be helpful
Happy Trading
Happy Trading
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NotRoss : I don’t know how to look at graphs, it’s very helpful to me, thank you
Johnnie Worker : Thanks for taking my favorite stock$Adobe (ADBE.US)$ as an example. Very appreciate
Mike Hunt : I’m a fan of SAR (stop and reverse) too
JasGreenTea : Hi! I'm a complete newbie to this so.. Really hope to seek for your patience in guiding me please!
First, which lines indicate the gaps on candles?
Second, which lines indicate the Bollinger bands?
Third, MACD.. So, look at the pink and blue lines on the main graph?
Last, yellow, pink and blue line.. Which is then the actual line to look at for the current price for the stock?
Hope to hear from ya soon, thanks so much!!!