synonymDMA(Parallel line difference index) generally refers to parallel line difference index
The parallel line difference (DMA) indicator is to use the average of two different periods to judge the size of the current trading energy and the futurePricetrend。DMA indexIt is a medium and short termindex。
DMA=stock price short-termaverage value- Long term average value of share price
AMA=DMA short-term average
Take the 10th and 50th days asBase periodAs an example, the DMA index of is calculated as follows:
DMA (10)=10 day stock price average - 50 day stock price average
AMA (10)=10 day DMA average
As with the calculation of other indicators, due to the different calculation periods selected, DMA indicators also include daily DMA indicators, weekly DMA indicators, monthly DMA indicators, annual DMA indicators and minute DMA indicators.Often used for stock market research and judgmentthe said dayDMA index and weekly DMA index.Although their calculation values are different, the basic calculation method is the same.In addition, with the stock marketsoftware analysisWith the development of technology, investors only need to master the basic principles and calculation methods of DMA formation, without goingCalculation indexIt is more important to use DMA indicators to analyze and judgeStock quotations。[1]
Application rules
Announce
edit
1. DMA line crosses AMA line upwards and buys;DMA line crosses AMA line downward and sells.
2. When DMA and AMA are both>0 (that is, they are above the zero line on the graph) and move upward, it is generally indicated that the stock market is atBull marketMiddle is the buying signal, which can be bought or held;When DMA and AMA are both<0 (that is, they are below the zero line on the graph) and move downward, it is generally indicated that the stock market is atBear marketMedium, forSell signal, you can sell stocks or wait and see.
3. When DMA and AMA are both<0, after a period of decline, if both move up from the low position at the same time, it is a buy signal;When DMA and AMA are both>0, after a period of rise, if both move down from the high position at the same time, it is a sell signal.
4. Cross signal when DMA indicator deviates from stock price,reliabilityHigher.
5. DMA indicators are also suitable for combinationMorphological theoryConduct analysis.
6. DMA indexMACD indicator、TRIX Index The three constitute a group of indicators to verify each other.
Practical Skills
Announce
edit
1. DMA index existsPositive numberDifference from negative numbers. Generally, positive numbers representBull marketOperation condition of, negative number indicatesShort marketSo investors need to consider the market bulls when using DMA indicatorsshort positionDirection and time[2]
2. The DMA index is winding up, that is, the DMA index and AMA index are winding up and down, which means that the market is in theShock finishingAt this time, the direction guidance of DMA indicators is weak
3. DMA index consists of DMA line and AMA line, and DMA line and AMA line also exist“Death crossoverAndGolden cross", that is, when the DMA line breaks through the AMA line downwards, the" dead cross "effect will appear; when the DMA line breaks through the AMA line upwards, the" golden cross "effect will appear
4. There is a zero axis point application rule for DMA indicators. That is, when the value crosses the zero axis, no matter whether its direction is positive or negative, it will continue a trend, which is easy to show when long and short positions change
