
BRK.B Option
Total AssetsRecommend using MACD to help determine the direction of the trend and the strength of its momentum:
Determining trend direction: When both DIF and DEA are above the 0 axis, it indicates a bullish trend; when both are below the 0 axis, it indicates a bearish trend.
Judging momentum changes:
1. Expanding red bars = increasing bullish momentum, shrinking red bars = weakening bullish momentum.
2. Expanding green bars = increasing bearish momentum, shrinking green bars = weakening bearish momentum.
3. Assisting in divergence judgment: When the price makes a new high/low, but the MACD histogram does not make a corresponding new high/low, it indicates that the trend momentum is weakening and a reversal is possible. This needs to be judged in conjunction with candlestick patterns, trading volume, and support/resistance levels.
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