24 basic indicators (2) -- kdj

Random indicator-kdj

The kdj indicator is also called a random indicator? Dr. George Lane first proposed a very novel and practical technical analysis index. It was initially used for futures market analysis and was widely used for medium-and short-term trend analysis in the stock market, it is the most commonly used technical analysis tool in futures and stock markets.

Section 1 principle and Calculation Method of kdj indicators

I. Principle of kdj indicators

The random indicator kdj generally uses a specific period (usually 9 days or 9 weeks) based on the statistical principle) the maximum price, the lowest price, the closing price of the last calculation cycle, and the proportional relationship between the three values are used to calculate the immature random values of the last calculation cycle, then, the K value, D value, and J value are calculated based on the smooth moving average method, and the trend of the stock is drawn into a curve.
The random indicator kdj is calculated based on the data of the highest price, the lowest price, and the closing price. The obtained K value, D value, and J value form a point on the coordinate of the indicator, respectively, connecting countless such points forms a complete kdj indicator that reflects the price fluctuation trend. It is mainly a technical tool that uses the real volatility of price fluctuations to reflect the strength of the price trend and the phenomenon of overselling, before the price has not increased or decreased. In the design process, it mainly studies the relationship between the highest price, the lowest price and the closing price. It also integrates some advantages of the concept of momentum, strength indicators and moving average. Therefore, quick, quick, and intuitive analysis of quotations.
The random indicator kdj first appeared in the form of KD indicators, which were developed based on William indicators. However, the William indicator only determines the phenomenon of overselling stocks. In the kdj indicator, the concept of moving average speed is integrated to form a more accurate basis for trading signals. In practice, the key line and the D line are used together with the J line to form the kdj indicator. Because the kdj line is essentially a concept of random fluctuations, it is more accurate to grasp the trend of medium and short-term quotations.

Ii. kdj metric Calculation Method

The calculation of the indicator kdj is complex. First, we need to calculate the cycle (N days, N weeks, etc.) of the respiratory value, that is, the immature random indicator value, and then calculate the K value, D value, J value, and so on. Take the daily kdj value calculation as an example. The formula is as follows:
N-day CLR = (CN-ln) fingerprint (HN-ln) × 100
Formula, CN is the nth day closing price; Ln is the lowest price in N days; HN is the highest price in N days. The respiratory rate always fluctuates between 1 and.
Second, calculate the K value and the D value:
K value of the day = 2/3 x K value of the previous day + 1/3 X that day of the unique date of the unique type
Daily D value = 2/3 x previous day D value + 1/3 x current day K value
If the K and D values of the previous day are not available, 50 can be used instead.
Take the KD line with a cycle of 9 days as an example. First, we need to calculate the number of unique visitors in the past nine days, that is, immature random values. The formula is as follows:
9-day CLR = (C-L9) pushed (H9-L9) x 100
Type, C is the closing price of the 9th day; 9 is the lowest price within 9 days; H9 is the highest price within 9 days.
K value = 2/3 × K value of the previous day + 1/3 × day-based unique visitors
D value = 2/3 x K value of the previous day + 1/3 x date of the same date
If the K value and D value of the previous day are not available, 50 can be used instead.
It should be noted that the smoothing factors 1/3 and 2/3 in the formula can be manually selected. However, it is already agreed that the smoothing factors 1/3 and 2/3 are fixed. In most stock market analysis software, the smoothing factor has been set to 1/3 and 2/3, and does not need to be changed. In addition, a j indicator is usually included in the introduction of KD.
The formula for calculating the J indicator is:
J = 3d-2k
In fact, the essence of J is to reflect the deviation between K value and D value, so as to lead the Kd value to find the header or bottom. The J value range can be greater than 100.
The J indicator is an auxiliary indicator. The earliest kdj indicator has only two lines, namely, the K and D indicators. The indicator is also known as the KD indicator. With the development of the stock market analysis technology, KD indicators gradually evolve into kdj indicators, thus improving the ability of kdj indicators to analyze quotations. In addition, in some important analysis software of the stock market, the K, D, and j parameters of the kdj indicators have been simplified to only one, that is, the number of cycles (such as day, week, month, and so on ), moreover, with the development of software analysis technology in the stock market, investors only need to master the basic principles and calculation methods formed by kdj, and do not need to calculate the values of K, D, and J, more importantly, kdj indicators are used to analyze and determine the stock price.
Similar to the calculation of other indicators, the selected calculation cycle is different, kdj indicators include daily kdj indicators, weekly kdj indicators, monthly kdj indicators, and minute kdj indicators. The daily kdj and weekly kdj indicators are often used for stock market research. Although their values are different during calculation, the basic calculation method is the same.

Section 2 General Evaluation Criteria for kdj indicators

The random indicator kdj mainly analyzes the overbuy and oversell in the stock market through the graphic relationship between the three curves K, D and J, trend deviation and cross-cutting between the K-line, the D-line, and the J-line to predict the medium, short-term, and long-term trend of the stock price. Kdj is a well-known analysis tool for most investors in the market. However, when using kdj, investors may find that the analysis results differ greatly from the actual trend, sometimes, the opposite conclusion is drawn, mainly because most investors only know the general analysis principles and methods of kdj, little is known about the connotation and specific analysis skills of kdj analysis indicators. This section describes the general analysis and determination skills and analysis methods of kdj popular in the stock market analysis, focuses on mining the internal laws of kdj indicators, and analyzes in detail some special analysis and determination functions of kdj.
The kdj indicator has three curves, in application, the general evaluation criteria of kdj indicators are mainly from the values of three kdj parameters, the form of kdj curves, the crossover of kdj curves, the deviation of kdj curves and the line k, line D, line J the operating status and the combination of the kdj curve and the stock price curve are considered.

1. kdj values

1. Value Range
In the kdj indicator, the value range of K and D is 0-100, while the value range of J can be greater than 100 and less than 0, however, in the analysis software, kdj's scope is 0-100. Generally, in terms of sensitivity, the J value is the strongest, the K value is the second, and the D value is the slowest. In terms of security, the J value is the worst, the K value is the second, and the D value is the most stable.
2. superbuy and supersale Signals
Based on the value of kdj, you can divide it into several areas, namely, the overbought area, the oversold area, and the wandering area. According to the general criteria, the values of K, D, and J are oversold areas, which is a buying signal. The values of K, D, and J are over 80, is the sales signal; k, D, J, the three values between 20-80 is the wandering area, should wait and see.
3. Comparison of multiple air forces
Generally, when the values of K, D, and J are near 50, the power of both sides is balanced. When the values of K, D, and J are greater than 50, the power of multiple sides is dominant; when K, D, and J values are smaller than 50, it indicates that the air is dominant.

Ii. Form of kdj Curves

The Analysis and Determination of kdj indicators can also be analyzed from the form of kdj curves. When the kdj indicator Curve Graph forms the head, shoulder, and bottom forms, double top and bottom forms (m head, W bottom), and triple top and bottom forms, it can also be analyzed based on the analysis and determination methods of morphological theories. The various forms of the kdj curve are an analysis method for judging the market trend and determining the buying and selling time. In addition, the kdj indicator curve can also draw trend lines, pressure lines, and support lines.
1. When the kdj curve is at a high position above 50, if the trend of the kdj curve forms a reverse shape such as m or three-headed top, the stock price may change from strong to weak, and the stock price is about to drop sharply, stocks should be sold in a timely manner. If the stock price curve also appears in the same form, it can be confirmed that the decline can be determined using M-headed or triplicate theory.
2. When the kdj curve is low below 50, if the trend of the kdj curve changes from weak to strong, the stock price is about to rebound upwards, and a small amount of shares can be absorbed in the bargain. If the stock price curve also appears in the same form, the increase can be determined by the W bottom or triple bottom theory.
3. The accuracy of m head and triple top shape in kdj curve is higher than W bottom and triple bottom.

Iii. Crossover of kdj Curves

Kdj curve crossover is divided into two forms: Golden crossover and death crossover
In general, during the overall increase and fall of a stock, the K, D, and J lines in the kdj indicators are subject to two or more "golden crossover" and "Death crossover.
1. When the stock price goes through a long period of low-price consolidation, and the K, D, and J lines are all below 50 lines, once the J and K lines almost break the D line at the same time, it indicates that the stock market is about to become stronger, and the stock price decline has ended, and the stock price will stop falling up. You can start to buy stocks and establish a warehouse in the middle and long term. This is a form of "golden crossover" for kdj indicators.
2. When the stock price goes through a period of consolidation, and the K, D, and J lines are all in the vicinity of the 50 lines, once the J-line and the K-line almost broke the D-line at the same time and the transaction volume was released again, it indicates that the stock market is in a strong position and the stock price will rise again. You can add code to buy stocks or hold shares to rise, this is a form of "Golden Cross" for kdj indicators.
3. When the stock price rises after a long period of time in the early stage, the stock price increases greatly, once the J-line and K-line are at a high position (more than 80) almost at the same time, when breaking down the dashboard, it indicates that the stock market is about to change from strong to weak, and the stock price will drop sharply. At this time, we should sell most of the shares instead of buying them, this is a form of "Death crossover" of kdj indicators.
4. When the stock price drops for a period of time, the stock price is not motivated to rebound upwards, and various moving averages place a strong pressure on the stock price, when the kdj curve rebounded to the vicinity of line 80 for a short period but failed to return to line 80 or above, once line J and line k broke down again, it indicates that the stock market will enter the extremely weak city again, the stock price will also fall, so you can sell it again or wait and see. This is another form of the kdj metric "Death crossover.

Iv. Deviation from the kdj Curve

The deviation between the kdj curve is that when the trend direction of the kdj indicator graph is exactly the opposite of that of the kdj curve graph. There are two types of kdj indicator deviations: Top deviation and bottom deviation.
When the stock trend on the K-line chart is one-to-one peak, the stock price continues to rise, while the kdj indicator on the kdj curve is one-to-one peak, which is called a top deviation. The top deviation is generally a signal that the stock price will reverse at a high position, indicating that the stock price is about to fall in the short term, which is a signal of selling.
When the stock trend on the K-line chart is lower than the peak, the stock price is falling, and the kdj indicator on the kdj curve is at the bottom of the base, which is called a low deviation. The bottom deviation is generally a signal that the stock price will reverse at a low position, indicating that the stock price is about to rise in the short term, which is a signal of buying.
Similar to the deviation of other technical indicators, the accuracy of top deviation is higher than that of bottom deviation in kdj deviation. When the stock price is at a high level and kdj is at or above 80, it can be considered that the stock price is about to reverse, and investors can sell the stock in time; while the stock price is at a low level, kdj is also at a low position (below 50) when there is a base deviation, it usually has to appear several times before confirmation, and investors can only do strategic warehouse building or short-term investment.

V. Running status of K, D, and J Curves

1. When the J curve begins to break through the K curve at the bottom (below 50), it indicates that the weakness of the stock price may be broken, and the stock price will move upward in the short term, investors can consider creating a small number of long-term warehouses.
2. When the J-curve breaks through the K-curve and moves up quickly, and the D-curve also goes up, it indicates that the stock price has started to rise in the long term, and investors can increase the intensity of buying stocks.
3. When the K, D, and J curves begin to get rid of the narrow consolidation range in the early stage and move up quickly at the same time, it indicates that the stock price has entered a strong position in the short-term, and investors should firmly hold their shares to rise.
4. When the J-curve starts to turn down at a high position (80 or above) after a fast upward movement, it indicates that the stock price has risen too fast in the short term and will begin to be adjusted in the short term, investors can sell stocks in the short term.
5. When the D curve starts to turn down at a high position, it indicates that the short-term rise of the stock price may end, and investors should sell the shares in the middle line.
6. When the K-curve also begins to turn down at a high position, it indicates that the medium-and short-term rise of the stock price has ended, and investors should leave the stock.
7. When the K, D, and J curves move down from a high position at the same time, it indicates that the decline trend of the stock price has been formed, and investors should firmly hold on to the sidelines.

Vi. Combination of the kdj curve and the stock price curve

1. When the kdj curve and the stock price curve rise from the low position (the kdj value is below 50), the stock price is expected to continue to rise in the long term, investors should continue to hold shares or buy at low prices.
2. When the kdj curve and the stock price curve decline from a high position (the kdj value is above 50), it indicates that the stock price will continue to decline in the short term, and investors should continue to hold the currency to watch or sell at an on-board height.
3. When the kdj curve fell from a high position, after a strong consolidation for a period of time, it rose up again and set a new high, and the stock price curve rose again after a strong consolidation, it indicates that the stock price is still strong, and investors can continue to hold shares to rise.
4. When the kdj curve fell from a high position, after a period of consolidation, it went up again, but when it reached the early high point, it turned around and went down, and it was not possible to create a new high, while the stock price curve is still slowly rising and hitting a new high, the kdj curve and the stock price curve form the opposite trend at the high level, which may mean that the momentum of the rise of the stock price begins to weaken, the top deviation of the kdj indicator occurs. At this time, investors should be careful, once the stock price from the bottom, the results should be cut off in a timely manner.
5. When the kdj curve experienced a long decline in weakness, it rebounded after a period of time and made a new low, while the stock price curve also made a new low after the weak rebound, it indicates that the share price decline momentum is still strong, and investors can continue to hold the currency.
6. When the kdj curve rebounded from the low position to a certain high position and fell down again, but the callback to the early low point to stop falling and stabilize, and failed to create a new low, while the stock price curve is still falling slowly and creating a new low, the kdj curve and the stock price curve form the opposite trend at the low level, which may mean that the momentum of the decline in the stock price has begun to weaken, the kdj indicator shows a baseline deviation. At this time, investors should also pay close attention to the stock price trend. Once the stock price goes up, they can buy it in the short-term, waiting for the rebound.

Section 3 Special kdj Analysis

I. kdj analysis cycle

Day, week, month, and minute (mainly 60 minutes)
The application period of kdj, whose analysis parameters are less than 10 days, is about 3 days (from the golden cross to the dead cross is about 3 days)
Kdj, whose analysis parameters are less than 50 days, has a service cycle of about 10 days.
The application period of kdj with more than 50 days as analysis parameters is about 20 days.

Ii. Principle of Moving Average first

Once the stock price is squashed by the long-term moving average, kdj can only perform short-term operations on the golden forks, rather than making medium-and long-term investments. This is the premise for kdj to use. In the long term moving average, and away from the moving average, kdj gold forks, the stock price may rebound sharply, can do short-term operations

Iii. General cycle of the Rise

Daily kdj is maintained for a period of 15 days at most-1 month
Weekly kdj is in the middle, and the maintenance time is one month-three months (once the golden cross, it will basically increase within one month, but the increase cannot be determined)
Monthly kdj is a long-term, and the maintenance time is generally 3 months-5 months

4. After permission removal, kdj indicators have no significance for analysis and determination. At least three months later can be re-determined.

V. Modification of kdj Parameters

With the wide application of technical analysis, the importance of technical indicators is self-evident. However, the current calculation of technical indicators has been greatly simplified, which leads to a wide range of similarities in technical indicators and has lost its guiding role. Therefore, in order to keep accuracy, sensitivity, and timeliness as harmonious and unified as possible, it is necessary to reset parameters for some indicators, and pay attention to the following general principles:
1. Set parameters based on the time cycle. Regardless of the dashboard or individual stocks
The cycle itself is often a very important parameter, which is particularly prominent in terms of moving average and strength indicators. The measurement of the cycle is usually determined by the time span of two important low points. At the same time, due to the difference between long, medium, and short-term, investors must set personalized and well-known parameters according to the specific situation, and 5 (day) or its multiples, And the febonanz series are all good choices in this regard.
2. Maintain consistency between different time standards. If you place a parameter that is applicable to the Japanese line in time-sharing
Otherwise, shock indicators will be too sensitive, and the weekly or monthly indicators will obviously lag behind. Therefore, in the application process, this principle must be adapted before use, this is not a simple computing problem, but requires fine-tuning after conversion. Although some indicators are absolutely consistent, they can still achieve better results.
Third, pay attention to the similarities and differences between the dashboard and individual stocks. Because the general relationship between the dashboard and individual stocks is special
Combined with the same index parameter of the dashboard, it can be directly or slightly adjusted and used for most stocks. However, after all, there is a difference between the two, the average results of the dashboard often cover up a lot of truth or ignore personalization, that is, individual stocks in the super strong or ultra-weak status are different from those in the dashboard, and their parameter settings should be set up separately.
Fourth, it is constantly adjusted and optimized as the market changes. Strong and weak stocks are very different from the general situation.
Heng city and trend operation are also different. In the face of ever-changing markets, once we find that the original parameters are not suitable for the time
This parameter needs to be modified to optimize the metrics. This should be a long-term task.
This is especially true for period parameters.

6. Analysis and Determination of kdj indicators with different cycle parameters

(1) how to use kdj on the 34 th (Note: This is the kdj parameter on Qianlong software)

For most stock market analysis software, investors can modify indicators based on the trend of different stocks, stocks in different periods and investors' interests and preferences, so as to draw different analysis conclusions. Change the value of kdj to 34. The following describes how to use kdj on the 34 th.
1. First, kdj operation intervals are divided into extremely weak zones under 20, 20-50, 50-80, 50-80, and 80-80, the value 50 is the dividing line between strength and weakness.
On the 34 th, the 50-line kdj indicator was a strong short-term resistance level for the stock price in the weak zone. As long as the D value in kdj was not effectively pushed to the 50-bit value, it cannot be said that the stock price has already moved out of the weak zone. It is very normal that the Kd value returns without success at this point. Therefore, we must pay great attention to the role of this resistance level. Many stocks have rebounded at this point.
On the 34 th, the 50-line kdj indicator provided some support for the stock price falling from the strong zone, but it was easy to break through, which is of no reference significance. This works in concert with the rise in stock prices, and the same can be true if there is no falling volume.
2. When the value of kdj is less than 20 in the extremely weak zone, it is generally not used as a purchase plan. It is dominated by currency holding, especially the stock price has just experienced a long decline. Unless a long time after the share price has fallen sharply and the price has been consolidated at a low position, if there is a reverse significance of the low position, or if there is a reverse significance, the K-line combination pattern clearly tells investors to enter the market.
3. When the three values of kdj are running in an extremely strong zone of 80 or above, the kdj generally does not make a sales plan and focuses on holding shares to rise. Unless there is a reversal of the significance of the high growth line (dark clouds covered by the top, wearing a broken head), or the reversal of the key line combination form clearly tells investors to leave.
4. The longer kdj runs in a very weak zone of less than 20, the more important the Golden Cross signal is to be sent in a very weak zone, especially for the golden forks with a large upward angle that can quickly break away from the 20-line, the K-line combination pattern also clearly tells us that there is a possibility of reversal. We should pay more attention to the significance of this golden cross, this is probably the first signal formed at the bottom of the middle and short-term.
5. The longer kdj runs in an extremely strong zone over 80, the more important it should be to send a dead cross signal in an extremely strong zone, especially for the dead forks whose downward angle is more powerful and quickly falls below the 80 line, the K-line combination also clearly tells us that there is a possibility of reversal, and we should pay more attention to the significance of this dead cross, this is probably the first signal formed on the top.
6. kdj gold forks in over 20 (weak zone) and over 50 (strong zone) are opportunities for intervention each time. The higher the position of the Golden forks, the greater the market significance, at the same time, you must pay attention to the kdj golden cross angle. The larger the angle, the better. In addition, pay attention to the combination of K-line form and transaction volume. For example, we saw kdj dead forks shortly after the High-position kdj gold forks (more than 80 lines) were involved. Investors should immediately stop the losses to prevent further losses. However, if there is no Kd value for the fork of less than 20, it will be quickly removed from the extremely weak zone of 20 or the K-line combination form confirmation and reversal, and there will be no significance for multiple major markets.
7. kdj should exit from the scene every time under 80 (strong zone) and below 50 (weak zone). The higher the bit value, the higher the risk of falling. However, if the Kd value does not continue to decline, there is no reference significance for kdj in the extremely weak zone below 20.
8. The short-term rise in the stock price will cause the continuous rise of kdj lagging behind. We should stay calm and avoid blindly chasing the rise. At this time, the stock price trend may be the opposite of that of kdj, wait patiently for the synchronization between the kdj trend and the stock price trend. Then look for opportunities to intervene,
Similarly, the short-term slump of the stock price will also lead to a lagging decline of kdj, And the rebound trend after the slump will also be the opposite of the trend of kdj. When the kdj trend synchronizes with the stock price trend, it is when we rebound.
9. In the falling market, the kdj golden cross position generated during the rebound will also be lower and lower, leading to the lower and lower kdj's dead cross position. In the rising market, the kdj dead cross location generated during callback is getting higher and higher, so that the kdj's golden cross location will become higher and higher.
10. After kdj rushed out of the extremely weak zone 20, kdj experienced a revenge attack. That is, the stock price did not rise much, and kdj quickly entered the strong zone, at this time, we should pay attention to the kdj's callback sorting, and pay attention to the second Golden Cross of kdj in the strong zone, because the second Golden Cross intervention will be more meaningful than every time. More room for growth.
11. The use of kdj only exists as an auxiliary means. Investors should make judgments with kdj indicators based on the Stock Price's Kline combination, volume-price relationship, and trend pattern, when the sales signals they send tend to be consistent, such sales signals are relatively reliable.

(2) How to Use kdj parameters on the 89 th (Note: This is the kdj parameter on Qianlong software)

If we use the kdj indicator on the 34 th as a short-term indicator for more practical analysis and determination, then the kdj indicator on the 89 th is an important indicator for the kdj midline analysis and determination, it has many similarities with kdj indicators on the 34 th, but there are also many different steps. The specific analysis and determination are as follows:
1. The same as the analysis and determination of the kdj indicators on the 34 th, the kdj operation range on the 89 th is also divided into extremely weak areas under 20, and the 20-50 is weak areas, the strong zone between 50--80 and the extremely strong zone above 80, and the value 50 is the demarcation line between the strong and weak areas.
The 50-line kdj indicator on the 89 th is a strong short-term resistance level for the stock price in the weak zone, as long as the D value in the kdj is not effectively pushed to the 50-bit value, it cannot be said that the stock price has already moved out of the weak zone. It is very normal that the Kd value returns without success at this point. Therefore, we must pay great attention to the role of this resistance level. Many stocks have rebounded at this point.
On the 89 th, the 50-line kdj indicator provided some support for the stock price falling from the strong zone, but it was easy to break through, which is of no reference significance. This works in concert with the rise in stock prices, and the same can be true if there is no falling volume.
2. Pay attention to the kdj in the range from 0 to 20. The closer the price to the bottom, the higher the strength of the stock price. Like the kdj metric on the 34 th, the longer kdj runs in a very weak zone under 20 on the 89 th, the more important the Jin Yi issued in a very weak zone, especially for the golden forks with a large upward angle that can quickly break away from the 20-line, the K-line combination pattern also clearly tells us that there is a possibility of reversal. We should pay more attention to the significance of this golden cross, this is probably the first signal formed at the bottom of the medium and long term.
3. The "80" line in the kdj indicator on the 89 th has important guiding significance for selling stocks in the midline. As long as the 89kdj curve does not go down beyond the 80 range, you can hold shares all the way until the j, k, and D lines in this indicator fall below the 80 multi-party line of defense, you can sell all or most of the stock in the midline.
4. On the 89 th, the longer the K, D, and J curves of kdj run in the extremely strong zone of 80 or above, the more important they should be, especially for the dead forks whose downward angle is more powerful and quickly falls below the 80 line, the K-line combination also clearly tells us that there is a possibility of reversal, and we should pay more attention to the significance of this dead cross, this is probably the first signal formed on the top of the middle and long term.
5. When the kdj indicator is at a high position above 80 on the 89 th and starts to scatter downwards, the remaining shares should be sold immediately, and the rest should not be easily bought (the dead forks should be pushed down and should be watched)
6. Once the kdj indicator is less than 20 on the 89 day and starts to spread upwards, do not sell the stock easily until it is determined to have a high fork

(3) how to use kdj in week 55 (Note: This is the kdj parameter on Qianlong software)

Compared with the kdj indicators on the 34 and 89 days, the 55-week kdj indicator is a long-term indicator in the kdj Index analysis and determination. It has a strong reference significance for determining the trend of a stock over the next six months.
1. The usage of kdj on the weekly k (55 weeks) is similar to that of kdj on the daily k (34 days.
First, similar to daily kdj indicators, the weekly kdj running interval is divided into extremely vulnerable areas under 20, and between 20 and 50 is the most vulnerable area, between 50--80 is a strong area and over 80 is a strong area, and the 50 line is a strong and weak line.
The 50-line weekly kdj indicator is a strong resistance level for the stock price rising from the weak zone. As long as the D value in kdj is not effectively pushed to the 50 value, it cannot be said that the stock price has already moved out of the weak zone, it is normal that the Kd value returns to this point without success. Many stocks have rebounded at this point.
The 50-line weekly kdj indicator is a strong support for the stock price falling from the strong zone. If the weekly kdj indicator is supported near the 50-line, the medium-and long-term stock prices are still optimistic. Once the kdj curve falls below the 50-line curve again, the medium-and long-term stock prices are still poor.
2. Weekly (55 weeks) kdj's forking fork in any region below 80 and the strong turn of J value supported by the Kline form are all signals involved in the position.
The lower the value of the Golden Cross, the greater the market significance. At the same time, you must pay attention to the kdj golden cross angle. The larger the angle, the better. In addition, pay attention to the combination of the K-line form and transaction volume. For example, after kdj's Golden Cross is involved, kdj has a dead cross, so we need to stop the stop immediately.
3. Weekly k (55 weeks) kdj's death fork in more than 50 regions and the strong turn of the J value when the K line is broken are both exit stop signals. The higher the decimal position, the higher the risk of falling.
4. When the three values of kdj on the weekly k line (55 weeks) run in a very weak zone of less than 20, it is generally not a purchase plan. It is the best strategy to hold the currency and wait and see. Unless the hidden.
5. When the value of kdj on the weekly k line (55 weeks) is running in an extremely strong zone of 80 or above, it is generally not a sales plan. It is the best strategy to hold shares to rise. Unless there is a reversal of the big Yin line (dark clouds cover the top, wear the head broken foot), or the reversal of the key line combination form clearly tells us to exit.
6. The short-term rise in the stock price will cause the continuous rise of kdj lagging behind. This is more obvious than kdj (34). At this time, we should stay calm and avoid blindly chasing up, at this time, the stock price trend may be the opposite of that of kdj, waiting patiently for the simultaneous operation of the kdj trend and the stock price trend. Then look for opportunities to intervene,
Similarly, the short-term slump of the stock price will also lead to a lagging decline of kdj, And the rebound trend after the slump will also be the opposite of the trend of kdj. When the kdj trend synchronizes with the stock price trend, it is when we rebound.
7. The higher the bit value of kdj's dead cross, the higher the risk to the stock price. Similarly, the lower the bit value of kdj's golden cross, the more secure the rise of the stock price. In the falling market, the kdj Golden Cross value generated during the rebound will also get lower and lower, which will cause the kdj's dead cross value to get lower and lower, in the rising market, the kdj dead Cross bit value generated during callback is getting higher and higher, which leads to the higher and higher kdj's Golden Cross bit value.
8. After kdj rushed out of the extremely weak zone 20, kdj experienced a revenge attack. That is, the stock price did not rise much, and kdj quickly entered the strong zone, at this time, we should pay attention to the kdj's callback sorting, and pay attention to the second Golden Cross of kdj in the strong zone, because the second Golden Cross intervention will have a larger and more room for improvement than every time.
9. The use of kdj only exists as an auxiliary means. Especially for kdj of Zhou kxian, the lagging effect is more obvious. You must not blindly choose the entry and exit points based on the kdj of Zhou kxian, however, kdj also has its advantages, that is, its stability and the direction of the medium-and long-term trends are clear.

Section 4 practical skills of kdj indicators

The practical skills of kdj indicators mainly focus on three aspects: the "Golden Cross" and "Dead cross" of kdj indicators, the position of kdj curves, and the operation direction of kdj curves. The following uses the daily kdj metrics (, 9, 12) of analyticdb as an example to reveal the sales and wait-and-see functions of kdj metrics. (Note: The 89-day metric parameters of Qianlong software correspond to those of analyticdb, and their usage is generally the same ).

I. Analysis of crossover of kdj Curves

(1) purchase Signal

1. When the stock price goes through a relatively long period of medium and low positions, the kdj curve also lingers in the middle (near 50 ), once the J and K lines in the kdj curve almost broke the D line at the same time, and the stock price also broke through the medium-and long-term average of the stock price with the cooperation of a large deal, it means that the stock market is about to become stronger, the stock price will rise in the short term, which is a kind of "Golden Cross" in the kdj indicator, that is, the median gold cross near 50. At this time, investors should promptly buy stocks in the middle and short-term. (1-1.
2. When the stock price goes through a period of high-position consolidation during the Rising process, and the K, D, and J lines are all hovering around the 80-line, once the J-line and the K-line almost broke the D-line at the same time, when the transaction volume is released again, it indicates that the stock market is in a strong position and the stock price will rise again in the short term, this is another form of the kdj indicator "Golden Cross", that is, the high gold cross near 80. At this time, investors can add code to buy stocks in a short period. (1-2.

(2) Sales Signals

1. When the stock price rises after a long period of time in the early stage and the stock price increases greatly, once the J-line and K-line are at a high position (near 80), they almost break down the D-line at the same time, at the same time, when the stock price falls below the medium and short-term average, it indicates that the stock market is about to change from strong to weak, and the stock price will drop sharply. This is a "death crossover" of kdj indicators ", that is, the high fork near 80. At this time, investors should sell most of the shares in a timely manner. (1-3.
2. When the stock price falls for a long period of time, and the stock price is not motivated to rebound upwards, and the long-term moving average puts a strong pressure on the stock price, the kdj curve is experiencing a short rebound, but failed to return to line 80 or above, and when line J and line k broke down line D again near 50, and the stock price was squashed by the short-and mid-term average, it showed that the stock market was entering an extremely weak market, the share price will also fall, another form of the kdj metric "Death crossover", that is, the median dead cross near 50. In this case, you can sell the remaining shares or wait and see. (1-4.

Ii. Location and Operation direction of the kdj Curve

(1) signals of pending shareholding increase

1. When the kdj curve goes up beyond 80, if the kdj curve continues to run in a region above 80, it means that the stock price is in a strong rising market. This is a signal from the kdj index that the stock ownership is about to rise, if the stock price is also dependent on the medium-and short-term moving average, this shareholding signal is more obvious. At this time, investors should firmly hold short-term shares to be up. (1-5.
2. When the three curves in the kdj curve run upwards at the same time, it indicates that the stock price is in a strong rising market, which is also a signal that kdj holds shares to rise. As long as the K and J lines in the kdj indicators do not fall below the D line, and the D line is always running upwards, investors can stay up all the way. (1-6.

(2) currency holding signals

1. When the kdj curve breaks down over 50, if the kdj curve is always running in a region lower than 50, it means that the stock price is in a weak position and falls. This is a signal from the kdj indicator that the currency is about to rise, if the share price is also suppressed by the medium-and short-term moving average, this kind of currency holding signal is more obvious. At this time, investors should firmly hold on to the coin. (1-7.
2. When the kdj curve is at a high position (more than 50), if the three curves Spread Downward at the same time, the stock price is in a weak drop, this is also the currency holding signal sent by kdj indicators. At this time, investors should firmly hold shares and wait. This shareholding signal is even more obvious. At this time, investors should firmly hold short-term shares to be up.