Technical indicators used by stock stores
Technical indicators... Mainly in trading markets such as stocks, commodity transactions, exchange, etc., it is a method for predicting and analyzing future changes in transaction prices from time series patterns of price and volume transaction results that occurred in the past.
① moving average
The short, medium, and long term moving averages have been confirmed as a matter of course. Of course, there are major signals such as the Golden Cross and Dead Cross as a way to use them, but there are others,
✅ The rate of deviation from the moving average
Judging from the trend in the past divergence rate of the stock in question, it is used not only to determine profit, but also for contrarian situations where a temporary rebound is expected by judging that it is sometimes oversold.
✅ Positional relationship with candlesticks
We also place great importance on whether the actual candlestick is above or below the moving average line. Moving averages are also sometimes support and resistance lines, so even if the difference is only a few yen, I place great importance on whether the actual candlestick or closing price is above or below the moving average line.
✅ Moving Average Orientation
When entering a stock that has been on a downward trend for a long period of time, confirm that all moving averages have moved upward and then go in. Since there is a long downtrend = there are many investors with unrealized losses, so if there is a slight rebound, there will be a quick return sale. Therefore, basically, everything in the short, medium, and long term is often in when everything improves.
② RSI
I often use expressions such as “if the RSI exceeds 70% to 80%, it is overbought; conversely, if it falls below 20% to 30%, it is oversold,” but I don't use it like a textbook at all.
This is because, depending on the stock, there are many stocks that go up or down at any point even if there is a sense of overheating.
Examples include semiconductor-related and shipping.
Even if the RSI exceeds 80, there are times when it rises until it sticks to 100, and vice versa.
The essential thing is to know the RSI trend for each stock.
Judging from past actual values, the numerical range that is easy to reverse can be properly analyzed to determine profits and buy on a contrarian basis.
Other than that, methods such as putting in contrarian consultations at RSI 20 for now, making progressive purchases around RSI 50, that is, when supply and demand improve, and then determine profit near the RSI ceiling value are often used in swing trading.
③ parabolic
It doesn't work at all with small to medium sized stocks with low trading volume, but I think parabolic is a pretty effective indicator for large indices such as the Nikkei Average and the S&P 500.
When the market price is in a downward phase, even if it appears to have reversed on the chart (candlestick), it is often a so-called “trick,” so they often check the reversal on a chart, confirm that the parabolic has properly turned positive without buying in a hurry, and then proceed with the purchase in a steady manner.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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