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CR energy index

1. Introduction

CR index refers to energy index, also called intermediate willingness index. Use the relationship between the highest price, the lowest price and yesterday's middle price to reflect the market's willingness to buy and sell. The principle is exactly the same as AR/BR. The biggest difference between CR and BR and AR is that the median price is used as the calculation factor. BR attaches importance to the significance of the closing price, but some experts believe that the most representative price should be the mid-day price. CR can measure the popularity of popularity and the potential of price momentum; CR can display pressure bands and support bands. In terms of function, it can assist BRAR's shortcomings. CR's M1, M2, and M3 daily averages are 5, 10, and 20 days.


2. Calculation formula

CR (N days) = P1 ÷ P2 × 100 Within N days, if the highest price on a certain day is higher than the median price of the previous day (the average of the highest and lowest prices), add the difference between the two to the strong sum; if the lowest price on a certain day Below the previous mid price, the difference between the previous mid price and the lowest price is added to the weak sum. Divide the strong sum by the weak sum and multiply by 100 to get CR, and then get the M1, M2, and M3 daily moving averages of CR.


3. Application

3.1 The principle of CR index is very similar to AR and BR. Generally, the personality of CR is between AR and BR, which is closer to BR. The increase in the CR indicator value indicates that the strength of the multi-party is increasing; on the contrary, the decrease in the CR indicates that the short power is increasing.

3.2 100 is the midline. If the CR indicator is always above the midline, the market is in a strong market; on the contrary, if the CR indicator often runs below the midline, the market is in a weak market.

3.3 Generally speaking, if CR moves away from the midline too quickly, it should be noted that the market may be overbought or oversold. CR effectively broke through the midline, indicating that the market may have reversed

3.4 CR's relative stock price will also diverge, especially in the high price zone of the stock price.

3.5 When CR falls below the four lines of MA1, MA2, MA3, and MA4, and climbs 160% from the low point again, it is an opportunity to sell for short-term profit.

3.6 When CR falls below 40, the chance of the stock price forming a bottom is quite high.

3.7 When CR is higher than 300-400, the stock price can easily reverse downward.


4. Features

4.1 Generally speaking, the use of AR, BR, and CR to find the bottom of the stock price is quite effective, but when used to find the top of the stock price, it takes a higher risk. At this time, the signal of CR must seek the support of VR and BOLLINGER BANDS , Once VR is rising above 250, the high-end signal rules of CR must be changed.

4.2 The area sandwiched by the MA1 and MA2 lines is called the "secondary seismic zone". When CR wants to cross the secondary seismic zone from bottom to top, the stock price will encounter secondary pressure interference; when CR wants to cross the secondary seismic zone from top to bottom In the earthquake zone, the stock price will relatively encounter secondary support interference.

4.3 The area between the MA3 and MA4 lines is called the "main seismic zone". When CR wants to cross the main seismic zone from bottom to top, the stock price will encounter strong pressure interference; when CR wants to cross the main seismic zone from top to bottom At that time, the stock price will relatively encounter strong support interference.

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors.  It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.