Home >

Stock Terms: OX Diagram &Nbsp; What Is OX Diagram?

2011/4/6 14:51:00 74

??? 日本語 Fran?ais English 中文

The OX diagram is also known as

point and figure charts

(Point and Figure Chart)

The OX chart is published in 1933 by Victor DeVilliers, "point number method to predict stock price changes".

It is a chart showing the price rise and fall by using the "O" and the fork "X".

Different from charts such as K-line chart, volume and price chart, pay attention to the performance of price at a certain price, instead of recording the process of price changing with time, and do not consider the volume of turnover.

The drawing rule of OX diagram is determined by "lattice value".

Whenever the stock price rises to a grid value, it is represented by a "X". When the fall reaches the magnitude of the grid value, it is represented by a "O".

OX diagram point number diagram research method

1. when X rises above the high point of the previous X, it is a buy signal.

2. when O drops above the low point of the previous O, it is the selling signal.

3. the OX intensive area is the consolidation area of price. The breakthrough of OX is a strong trading signal and plays a supporting and blocking role for subsequent prices.

Index of OX diagram

From a technical point of view, OX diagram is the simplest graphical method, but it is also the most difficult way to understand. The main feature of this method is that it lacks time scale and ignores the slight changes in price. It only records the direction of stock price movements through the predetermined number of points, so as to observe the market situation and new movement direction.

It must be noted that in drawing, time and quantity are not counted.

Therefore, a very small price may remain in the very narrow price range, which is very small for drawing.

For different stocks, the vertical price fluctuation described by the graph is quite different. The period represented by the horizontal axis is different for each stock. Some stocks may fluctuate several times in a day, others may be stable.

Therefore, it only indicates the direction of the change of the stock price in time.

Technical analysts available

OX diagram

In order to find the trend and track of the main direction of stock price change, if we do not consider the time factor, we can determine the power of supply and demand, and we can judge the strength of supporting stock price through the OX diagram, and the source of the stock supply that threatens the stock price.

These two forces are usually interpreted as stopping and supporting levels.

When drawing OX diagrams, it is very important to set the representative values of each grid. It directly controls whether the entire OX map can play its market function in the future.

Therefore, it is necessary to set the value of "per grid" and how many cases to rise or fall before setting off.

The increase of "grid value" means that the links with smaller amplitude are ignored.

Because in a mature market, prices are frequent and repeated ups and down are the rules of the market. To eliminate its interference with market price movements, the "grid value" can be raised.

{page_break}

OX drawing method

The OX diagram is not a coordinate representation of price changes. Instead, it shows the price changes through small squares. The main contents are as follows: * = price rise, O = price decrease.

The number in the square represents the month, and the figures on the left side indicate the unit price.

When making OX diagrams, you must use grid paper.

The ordinate of the OX diagram represents the price, while the abscissa does not represent time or its specific name.

Each vertical bar on the abscissa can only be marked with the same symbol, that is, each column can only be used with the same symbol.

(1) when each time

Share price

When rising, it is expressed by "X", and the price rises every unit.

For example, in the first column, the price per share rose from 7 yuan to 8 yuan, and a "X" was placed in the small square between 8-9.

For example, there are more than one unit at a time.

For example, when the price of third cases rises from 5 yuan to 7 yuan, they can hit two "X" at a time. If the price changes in one unit, it is not necessary to mark anything, for example, when the price rises from 7.3 yuan to 7.5 yuan, because it does not achieve a new unit price, it does not need to strike "X". Similarly, if the price falls within a unit price, it is also necessary to reduce the mark.

(2) every time the price drops, it is expressed by "O". When prices drop every unit, a "O" is added in the corresponding small box, and how many units are required to fill in the "O".

(3) when the price movement ends in one direction and changes in the opposite direction, another column begins to fall in the first column, when the price rises to 8-9 yuan, so in the second column, a "O" is used to indicate a unit price fall.

The meaning of the second column in the picture is that when the price rises to 8 yuan, it begins to decline and has been reduced to below 5 yuan.

(4) the Arabia figures in the small squares indicate the month, that is, which month the price changes to, and the "3" in the second column, on the one hand, the price falls to 5-6. On the other hand, when the price changes to this point, it enters March.

Similarly, the tenth column of "4" means that price changes entered the April.

From "3" in small squares to "4" in small square, we can see the fluctuation of stock prices in March.

{page_break}

Two functions of OX diagram

(1) it is easy to point out its breakthroughs by showing the situation and changes of high and low strength.

Many of the performances on K-line graphs are not obvious and can be clearly shown on the OX diagram.

(2) we can observe the long-term trend and the direction of individual stock price movements.

(1) when a trading signal appears in the OX diagram, it may be postponed for a period of time until it returns to the 45 degree angle tangent, or when it comes back to its support and resistance.

2. When the trend continues to rise or fall continuously, do not look for the high and low price area, but return to the fourth grid and play again. It is appropriate to return to the market and break its new high or new low point again.

(3) the most beautiful figure is the fourth breakthrough after three lines, the standard rise.

(4) any market is overly responsive due to the expected psychology of the public traders. Therefore, the long-term trend and price area should be used as a reference standard when deciding the time to stop the loss and decide whether to enter or leave the market.

Advantages and disadvantages of OX diagram

Advantage:

1., we can flexibly adjust the size of lattice and the number of inversion lattice.

2. trading signals are regular and mechanical, so they are less susceptible to subjective emotions.

3., a small space can be used to record changes in stock prices for a longer time.

Disadvantages:

Because the stock price continues to rise and the stock price continues to decline, there is no need to change. Therefore, it only considers the price behavior and ignores the time factor. In addition, it ignores the volume data, forming an incomplete analysis.