General Analysis and Determination of kdj indicators

General Analysis and Determination of 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 intersection of kdj curves *, the deviation of kdj curves and the line k, line D, J the line running 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

The intersection of kdj curves is divided into two forms: Golden Cross * and dead cross *.
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 another 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 downward, investors can sell the stock in time; while the stock price is at a low level, kdj is also at a low level (below 50) when the bottom deviation occurs, it usually takes several times for the bottom deviation to be confirmed, and investors can only make 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 goes down, they should leave the market in a timely and decisive 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 in the short-term, waiting for the rebound.

 

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3. Application Requirements:

The random indicator responses of kdj indicators are sensitive and fast. It is a better technical indicator for analyzing and determining short and medium-term trend bands. Generally, for those with large capital, the kdj value in the current month is gradually absorbed when it is low. The main node usually focuses on the position of Zhou kdj in normal operation, the results of analysis and determination of cycle high and low points in the midline band often result in frequent passivation of daily kdj due to the single-edge mode. Daily kdj is extremely sensitive to the change direction of the stock price, it is an important method for daily trading in and out; for short-term customers in small bands, 30 minutes and 60 minutes kdj are important reference indicators; for investors who have designated a sales plan to place orders immediately, kdj can provide the best inbound and outbound time in 5 minutes and 15 minutes.

The default parameter used by kdj is 9. In my personal experience, the parameter can be changed to 5 in the short-term, which not only makes the response more agile and accurate, but also reduces the passivation, common kdj parameters include, 36, 45, and 73. Different cycles should also be comprehensively analyzed in practice, so that the short and long trends will be clear at a glance. If there is a phenomenon of different periods of resonance, it indicates that the reliability of the trend is increased. The main points of kdj indicators are as follows:

1) The key line is the quick confirmation line-the value above 90 is a superbuy, and the value below 10 is a supersell;

The d is a slow Main Line-the value above 80 is overbought, and the value below 20 is oversold;

The J-line is a sensitive line. When the J value is greater than 100, especially for more than five consecutive days, the stock price forms at least a short-term header. If the J value is less than 0, especially for more than several consecutive days, the stock price should at least form a short-term bottom.

2) When the K value is gradually larger than the D value from a small value, the graph displays the D line from the bottom, and the current trend is upward. Therefore, when the K line on the graph breaks through the D line, that is, the purchased signal.

In practice, when the K and D lines cross up below 20, the short-term buy signal is more accurate at this time. If the K value is below 50, the D value is mounted two times in succession from bottom up, when the right bottom is higher than the left bottom, the stock price may increase considerably.

3) when the K value is gradually smaller than the D value from a large value, the graph shows that the K line underpasses the D line from the top, and the current trend is downward. Therefore, when the K line breaks down the D line in the graph, that is, the sold signal.

In practice, when the K and D lines cross down at more than 80, the short-term sales signal at this time is more accurate; if the K value is over 50, from top to bottom two times below the D value, the stock price may fall sharply in the market outlook when the "M" format is lower than the left one.

4) It is also a practical method to determine the top bottom of the stock price through the deviation between kdj and the stock price:

A) the share price hits a new high, while the Kd value does not reach a new high. It should be sold if it is a top deviation;

B) the share price is low in innovation, while the Kd value is not low in innovation. It should be bought if it is a base deviation;

C) the share price has not reached a new high, while the Kd value has reached a new high. The shares should be sold if they are at the top;

D) The stock price is not low in innovation, while the Kd value is low in innovation. The shares should be bought at the bottom;

It should be noted that the method for determining the top-bottom deviation of kdj can only be compared with the Kd value of the previous wave and cannot be compared.

4. Application Experience:

1) In practice, some short-term customers often use minute-level indicators to determine the market outlook and determine the timing of sales. In the T + 0 era, kdj indicators are usually used for 15 minutes and 30 minutes, in the T + 0 era, kdj is used for 30 minutes and 60 minutes to guide inbound and outbound traffic. Several empirical rules are summarized as follows:

A) if kdj is consolidating for a long period of time under 20 in 30 minutes and kdj is doing the same for 60 minutes, then once the value of D is mounted to the K value over 20 in 30 minutes, it may lead to a rebound that lasted for more than two days. If the daily kdj index is also at a low level, it may be an intermediate market. However, it should be noted that this crossover is valid only when the K value is greater than 20% of the D value;

B) If kdj turns around at 80 or above in 30 minutes, the value of K falls below the value of D and falls below 80, and the value of K is less than 20 to 50 in 60 minutes, it indicates that there will be a rollback, after 30 minutes of kdj detection, it may continue to go up;

C) if the value of kdj is over 80 in 30 minutes and 60 minutes, and the value of K is down to the D value after a long time of consolidation, it indicates that the price should be adjusted for at least two days;

D) if the kdj falls below 20 in 30 minutes and the kdj is still above 50 in 60 minutes, check whether the 60-minute K value passes through the D value (the K value is greater than the D value 20% ), if it is effective, it will start a new round of attacks; if it is ineffective, it indicates that it is only a rebound in the decline process, and it will continue to fall after the rebound;

E) if the price of kdj stops falling before 50 in 30 minutes, and the price of kdj switches up after 60 minutes, it indicates that the market may continue to rise. Currently, this is only a back-to-archive event;

F) if the kdj deviation occurs within 30 minutes or 60 minutes, it can also be used as a basis for analyzing and determining the top bottom of the market. For details, see the previous Japanese line deviation;

G) in the super market, the number of kdj instances can reach more than 90 in 30 minutes, and invalid cross occurs repeatedly in the high position. In this case, focus on the 60-minute kdj. When kdj switches down in 60 minutes, it may lead to a deeper rollback in the short-term;

H) during the slump, the value of kdj can be close to 0 in 30 minutes, but the overall trend is still not limited. At this time, we should also watch the 60-minute kdj. When the 60-minute kdj goes up effectively, this will cause a strong rebound.

2) when the market is in a very strong and weak Unilateral market, daily kdj often becomes inactive and should switch to macd and other medium-long indicators; when the short-term fluctuations in the stock price are violent, the daily kdj response lags behind, should switch to CCI, ROC and other indicators; or use slowkd slow indicators;

3) kdj parameters are generally set to 5 on the weekly basis. Weekly kdj indicators have obvious bottoming and bottoming effects. Therefore, band operations can save a lot of effort and maximize profits, it should be noted that the general weekly J value increases at the bottom of the V-shaped unit in the oversold area, indicating that it only rebounded and formed a reliable intermediate market with double base; however, the J value may also fall sharply in the top of the superbuy area, so we should be vigilant. At this time, we should combine other indicators for comprehensive analysis and determination. However, when the stock market is in a bull market, after a period of time in the ultra-buy zone, the share price will continue to rise sharply.

 

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Integrated Use of kdj and macd

Currently, kdj and macd are the most commonly used technical indicators in the market. The kdj indicator is an advanced indicator mainly used for short-term operations. macd is also called the moving average line for smooth similarities and differences, which is the deviation of the average market cost and generally reflects the overall trend of the midline. Theoretically, kdj indicators are advanced in reflecting the stock price. Near the 80 s, kdj indicators are in a strong and overbought area. The stock price is at risk. 50 is in the wandering area; 20 nearby is a relatively safe area, which belongs to the reselling area and can be used to create warehouses. However, due to its fast speed, frequent buying and selling signals are often incorrect; the macd indicator is basically synchronized with the market price, which increases the requirements and restrictions for sending signals, thus avoiding false signals. The advantage of combining the two to determine the market is that it can more accurately grasp the short-term buy and sell signals of kdj indicators. At the same time, because of the midline trend reflected by the characteristics of macd indicators, two indicators can be used to determine the stock price fluctuations in the medium and short term. From the gold leaves of Shaanxi (000812), we can see that kdj reached a low position in December 20 last year, and macd reached the bottom only in January 22. When kdj and macd expand upwards in January 23, the purchase signal is very easy to grasp. When kdj started high passivation in February 4, macd was still moving up, indicating that the rising kinetic energy still exists, but there will be some adjustments in the short term.

 

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Classic metric kdj. macd! Statement: My article may have your opinion and article! Do not enter the seat number! This is a summary of Lao Zhuang. Edit and learn about kdj. macd metrics. I know that the original formula is the best. At the same time! You are welcome to discuss and learn with me! Thank you! (Feel the most powerful attack band in China's stock market ...)

 
Stocks are expected to take a look at the week and month line. In many cases, the week and month lines are already running down, and the middle and long line trends are bad, but the Japanese line is just sending a golden cross, and the K line is also good, the combination of quantity and price is good, and the intervention at this time is usually the middle and short-term head. Next, let's talk about the different performances of kdj indicators on the daily, weekly, and monthly basis. (Note: the scope of application is the target unit selected for you) 1. kdj daily, weekly, and monthly low-level gold forks-low-level boot, and resolutely buy.

If the dashboard value of the selected target unit's daily kdj indicator is less than 20, kdj forms a low gold cross. At this time, the J value of the weekly kdj is less than 20 and the K-cross value is raised, or in the strong area to move up; at the same time, the monthly line kdj is also running in the low-median, and the direction is up, you can resolutely buy. If a stock needs to generate a large market, it must meet the direction of the kdj for weekly and monthly indicators. No exception! 2. kdj is running at a high level on the weekly and monthly lines, which is not suitable for adjustment. (Exclusive securities reference, looking at the stock market from a new perspective ......)

If the selected target unit's daily kdj indicator has a golden cross, and the weekly line's J value is over 90, and the monthly line's J value is over 80, the unit is facing an intermediate adjustment, at this time, short-term intervention is highly risky and should not be involved.

3. kdj's Golden Cross, weekly kdj's upward, monthly kdj's downward-rebounding market, with a small amount of participation.

If the selected target unit's daily kdj indicator features a golden cross, the running direction of the weekly kdj is up, and the running direction of the monthly kdj is down, it may be a rebound, with a small amount of money to participate.

4. kdj gold cross, weekly kdj downward, monthly kdj upward-Main Drive wash, weekly line Reverse.

If the selected target stock daily line kdj has a golden cross, the running direction of the weekly line kdj is down, and the running direction of the monthly line kdj is up, then the stock price is being washed or pitted after the test disk, or the main force deliberately suppress, after the weekly kdj direction reversal intervention.

5. kdj runs at a high level on the daily, weekly, and monthly basis-risks are imminent and should not be involved.

If the J value of the target unit daily kdj is greater than 100, the J value of the weekly kdj is greater than 90, and the J value of the monthly kdj is greater than 80, the risks are in sight and should not be involved.

6. kdj runs at a high level on the daily line, and runs at a low level on the weekly and monthly lines-short-term callback and secondary golden forks.

If the J value of the target unit's daily kdj is greater than 90, and the weekly and monthly lines are running at a low level, and the direction is upward, the system is faced with short-term Callbacks. After the stock price callback, on the Japanese line, kdj enters the Golden Cross again (Ding Jie Niu 2000)

From these aspects, we can see that when macd maintains its original direction, the stock price will continue to run according to the fixed trend when the kdj indicator is in the overbought or oversold status. Therefore, in terms of operation, investors can use this to determine whether the market is adjusted or reversed. Meanwhile, they can also properly avoid the risk of short-term adjustment to increase the short-term deviation. While observing the stock, the current horizontal adjustment is nearing the end, we can see that macd is still maintaining the original upward trend, after the adjustment, the kdj indicator is about to form a golden cross in the top 50, indicating that the stock price still has a chance to rise again in the short term. In general, for the determination of short-term trends, the sales signal sent by kdj must be verified and cooperated with macd. Once both of them issue the same command, the sales accuracy will be higher. (