Comprehensive use of kdj trend line

Emphasize the importance of technical indicators, mostly from the overall perspective of technical analysis. In practice, investors should pay attention to the use and practice of various technical analyses. With the passage of time, the technical analysis theory is complex. Each technical analysis has different perspectives and focuses, and it is indeed difficult to master. However, when using these technologies, you must understand that the theories and indicators of these technical analysis have their own weaknesses and defects. Therefore, the use of a single indicator has great blindness and limitations. The direct consequence is the failure of judgment and Investment (speculation). Therefore, for a mature professional investor, we should master various technical analysis methods, conduct comprehensive research and multi-angle thinking, and give full play to the advantages of multiple technical analysis, in order to be invincible.
During the analysis of kdj, I have always stressed the sensitivity of this indicator. In fact, this sensitivity also exists in other technical indicators, but there are too many investors who use kdj, increased its resonance. This increases the sensitivity of this indicator. In the past, people used random indicators generally through the highest price, the lowest price, and the closing price of the last day within a specific period (usually 9 days) and the relationship between the three, to calculate the immature random value of the last day. However, the calculation of kdj Based on the smoothing moving average is often random. The reliability of the J value is the worst, because it is too sensitive, followed by the K value, the D value is slightly more stable. KD comes from the William indicator, so it also has the ability of William indicator to prompt the phenomenon of overbuy and oversell. In practice, when the K-line crosses the D-line at the low position, it is called the "Golden Cross". It is a short line that grabs the signal. When the K-line falls to the high position, it is also called the dead cross, it is a funding signal. In this process, the J-line often leads the KD and shows a rising and falling trend. Just like the starting gun in the hands of the referee on the sports field, the gun is not shot, and the athletes cannot get up and run, otherwise, the system will violate the rules and be punished. However, when a gun is held up, athletes must maintain a scrambling posture. For example, before kdj started in September December 31 last year, kdj touched the bottom of line J at an instant, and then hooked up and crossed the line D with the line k to form a "golden cross ", looking at William's indicator, the bottom is reached, and the two are at the same time, a round of rebound is coming soon.