What are the red and green columns in the stock K-line chart?

Basic application method of MACD

In application, MACD takes 12 as the fast moving average (12 moving average) and 26 as the slow moving average (26 moving average). Calculate the values of these two moving averages first, and then calculate the difference between the two values, that is, the difference (DIF) = 12 EMA-20. Then according to this deviation value, calculate the EMA value (that is, MACD value) of No.9; Draw lines for DIF and MACD values respectively, and then analyze them according to "staggered analysis method". When the DIF line breaks through the MACD smooth line upwards, it is to confirm the rebound point, that is, the buy signal. Conversely, when the DIF line falls below the MACD smooth line, it is the point to confirm the downward trend, that is, the selling signal.

MACD theory can be used not only to confirm the medium-term upward trend or downward trend, but also to determine the short-term reversal point. In the graph, you can use the vertical distance between DIF line and MACD line to observe the straight column (the algorithm of straight column is very simple, just subtract MACD line from DIF line). When the straight bar decreases from the big one, it is a selling signal, and when the straight bar increases from the smallest (the largest negative number), it is a buying signal. So we can judge the short-term reversal point according to the straight bar.

Generally speaking, in the continuous upward trend, the moving average of 12 is above the moving average of 26, and the positive deviation (+DIF) will become larger and larger. On the other hand, in the downward trend, the negative differential deviation may become negative (-dif), and the negative differential deviation will become larger and larger, so when the market begins to reverse, the positive or negative differential deviation will decrease. MACD theory, that is, using positive and negative differences will reduce the deviation value. MACD theory, that is, using the intersection of positive and negative deviations and its 9-day smooth moving average, is the basis for judging buying and selling signals.