What does the trend indicator mean? How to analyze trend indicators

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What does the trend indicator mean? The trend indicator is to study and judge the equilibrium point of supply and demand during the rise and fall of the price, so as to judge the trend of the regular market and determine the investment behavior. In the future market, the change of the power of the buyer and the seller will affect the change of the future price index. The highest and lowest points of the current day's future price basically reflect the strength of the long and short sides. The DMI indicator is a practical technical indicator that tries to reflect this trend, including the upward trend line+DI, downward trend line - DI, trend average value ADX, and the evaluation value ADXR of ADX. How to analyze trend indicators 1. When analyzing DMI, it is not only necessary to combine all internal indicators, but also to study and judge together with other external indicators. 2. The range of DI rise and fall is between 0-100, and the strength of many parties is strong. The+DI value is amplified and approaches 100, and the future index may continue to rise; If the air force is strong and the - DI value is enlarged and approaches - 100, the index will continue to fall. If+DI decreases and approaches 0, it reflects that the momentum of many parties has weakened, and the futures index will stop rising and falling respectively. According to the change trend of+DI and - DI, investors can find out the strength of both sides and move at the right time. 3. From the perspective of relative strength, if+DI is greater than - DI, the+DI line will break through the - DI line from bottom to top graphically, which reflects the strengthening of multiple forces in the future market, and the future market is likely to move higher; If - DI is greater than+DI, the graph shows that - DI line breaks through the+DI line from bottom to top, reflecting that short positions are entering the future market, and the future market is likely to move lower; If the+DI and - DI lines cross and the range is not wide, it indicates that the futures market has entered the consolidation market. 4. For ADX, the following three aspects should be noted: a) Single trend: The futures market develops in a single direction with obvious trend. Whether it rises or falls, the ADX value will gradually increase and last for a period of time. In the face of such a single trend, or when the rise and fall values of DI and ADX rise at the same time, investors can follow the trend, but note that long-term following will also cause losses. (Shareholders College: http://www.58188.com ) b) Cowhide trend: When the new high and new low points of the current market index cross repeatedly, ADX will show a decreasing trend. When ADX gradually drops below 20,+DI and - DI show a horizontal trend. At this time, DMI trend indicators can only be used for reference, and cannot be completely used to enter the market. c) Reversal trend: when ADX turns from up to down, above 50 indicates that the market reversal is coming. If ADX turns from up to down at the high point in the rising trend, it indicates that the rising trend will end at the top; On the contrary, in the downtrend, ADX also turns from high to low, indicating that the bottom is at the bottom and the downtrend will end,. There is no certain standard for the value of ADX point reversal. Generally, it is effective to turn down when the high point is above 50. 5. ADXR is the evaluation value of ADX, and the fluctuation of ADXR is more gentle than that of ADX. When+DI and - DI cross send buying and selling signals, ADXR and ADX cross again, which is the last opportunity to enter and exit the market. The subsequent market is urgent, and immediate action should be taken. ADXR is also an indicator of market evaluation. When ADXR is at a high level, it indicates that the market fluctuates greatly; When ADXR is at a low level, it means that the market is better.