scratch2.0| Observation on deviation indicators: How to look at stock deviation indicators

In investing in the stock marketScratch2.0Investors often need some technical analysis tools to help judge the trend of stocksScratch2.0Among them, the deviation index is an important reference index. Deviating from the index can reveal the secret of the stock price movement from another angle and help investors to grasp the market trend more accurately. This article will deeply explore the observation and interpretation methods of deviation indicators to help investors improve their professional skills.

Deviation from index is a kind of non-synchronous phenomenon between stock price and trading volume, technical index and so on. It usually shows that the high or low points of the stock increase or decrease in turn, but the corresponding indicators show the opposite trend. Specifically, top deviation and bottom deviation are the two most common deviations.

Parietal deviation

Top deviation means that when the stock price is in the high region, the price reaches a new high, but the corresponding trading volume, technical indicators and so on do not follow the record high, or even decline. This usually indicates a lack of momentum for share prices to rise and the market may be on the verge of a reversal. In practice, investors should be vigilant against the phenomenon of top deviation and gradually reduce their positions at higher prices in order to avoid possible downside risks in the future.

Bottom deviation

Corresponding to the top deviation, bottom deviation means that when the stock price is in the low region, the price innovation is low, but the corresponding trading volume and technical indicators do not follow the record low, or even rise. This usually indicates that there is less momentum for share prices to fall, and the market may be about to reverse. In practice, investors can pay attention to the opportunity of bottom deviation, gradually increase their positions on bargain, and seize the opportunity of market rebound.

When using deviation indicators to make investment decisions, investors need to pay attention to the following points:

oneScratch2.0. Combined with other technical indicators: although the deviation index has a certain reference value, a single index can not guarantee the absolute accuracy. Investors need to combine other technical indicators, such as moving average, RSI, MACD and so on, to carry out comprehensive analysis in order to improve the accuracy of judgment.

twoScratch2.0. Focus on fundamentals: although technical analysis can provide some clues to market trends, the impact of fundamentals on stock prices can not be ignored. When using deviation indicators, investors also need to pay attention to the company's fundamental information, such as financial statements, industry dynamics, market policies and so on, in order to make a more comprehensive judgment.

3. Be cautious and patient: investing in the stock market itself is an uncertain process. When using deviation indicators, investors need to be cautious and patient, not to blindly follow the trend, and not to rush for results. Only on the basis of in-depth analysis and full preparation can we better grasp the market opportunities.

The following is a table that compares the characteristics of top deviation and bottom deviation to help investors better understand deviation indicators:

Through the above, investors can have a preliminary understanding of the deviation index and how to apply it to stock investment decisions. In practice, investors also need to continue to learn and practice to improve their professional skills in order to make a steady profit in the stock market.