Kdj metric analysis usage highlights

Kdj Metrics The Random Index was first proposed by Dr. George Lane and is a very novel and practical technical analysis index. It was first used for the analysis of the futures market, it is widely used in the middle and short-term trend analysis of stock markets. 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 smoothing moving average, and Curve Figure to judge a stock Trend .

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 mainly 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 Signal Is a technical tool. 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.

Section 2 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 break through between the K-line, the D-line, and the J-line, so as to predict Share price Medium, short-term, and long-term trends. 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 form such as m or three-headed top, it may indicate that the stock price Strong Convert Weak The stock price is about to drop sharply and should be sold in time. 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.

3. Intersection of kdj curves *

The transactions of the kdj curve are divided into two forms: Golden Transactions * and dead transactions *
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 Transactions *" and "Fatal Transactions.
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 exchange *" 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 kdj metric "golden exchange.

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 *" for 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 kdj's "death *" metric.

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.

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.

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.

(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.

2. When the kdj curve dies at a medium high (more than 50), if the three curves go down at the same time, it indicates that the stock price is in a weak and falling market, 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.

Condition: When the weekly kdj technical indicator of a stock generates a gold *, the average quantity in the five weeks must be smaller than the 10-week average. Then, when the average kdj technical indicator volume in the five days is less than the 10-day average, it also forms a gold *, which is a valid gold *.

Practical experience and Application of kdj indicators

Among the traditional Qian Long software commonly used by brokers, there are dozens of technical indicators, making new investors at a loss. With the popularization of computers, especially the continuous innovation of stock professional software, some stock software comes with a self-developed index function, which makes it even more fun for tech-indicator fans to adapt and innovate. The number of popular online indicators is even more than tens of thousands. In fact, it keeps the old investors alone, the variations in the expressions of different combinations of the average price and volume are rare and less practical than the classic indicators commonly used in traditional systems, of course, it still takes some time to grasp the essence of it. Zhao Yun's gun in Three Kingdoms can be used all over the world, * Not the gun itself, but the user of the gun!

Any technical indicator has its own defects and limitations, such as the blind zone of macd on the volatility trend, the blind zone of kdj on the rolling-over single-edge passivation, and the blind zone of the pagoda line on the top and bottom, whether the pressure support of the moving average can effectively adjust the blind spots in place, and the turnover rate cannot identify the blind spots of the suction and shipment. We can use other indicators to complement each other's shortcomings. For example, we use kdj and CDP to compensate for the auxiliary macd system; CCI and DMI to compensate for the kdj system; kdj and RSI to compensate for the moving average system; kdj, RSI deviation to make up for the pagoda Line System; the stock price level and the K-line moving average to make up for the Blind Zone of the turnover rate, etc. Of course, sometimes one indicator cannot completely make up for the defects of another indicator, so we need to identify the problem.

Application: 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 actual practice, when the K and D lines are under 20 * up, 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 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 are more than 80 x downward, the short-term sales signal is more accurate. If the K value is more than 50, the D value is worn down two times from top to bottom, 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.

In the actual operation process, kdj technical indicators often show valid funds * and invalid funds *. Invalid gold * means that the stock price does not rise but falls after the kdj gold * is bought. For the effectiveness of kdj gold *, we can judge the effectiveness by combining the weekly and daily kdj technical indicators.

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 gap between 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.

Solve the Problem of passivation and * line of kdj indicators

1. magnification. Because kdj indicators are very sensitive, we often provide some miscellaneous information, which may mislead investors and may lead to purchase or shipment signals, which leads to incorrect operations. If we zoom in to confirm the signal's feasibility, it will be better. For example, if the daily K line chart generates a low-level gold transaction * For the kdj indicator, we can enlarge it to the weekly chart. If the weekly chart also produces a golden transaction *, we will think that this signal is * strong and can be operated boldly. If the weekly chart shows that it is on the way down, the golden line on the daily chart is not ** strong, maybe it is the banker's * line method. At this time, we can adopt the wait-and-see method.

　　
2. morphology. Due to the sensitivity of kdj indicators, the indicators provided by kdj are often advanced. Therefore, we can use the form of kdj indicators to help find the correct purchase points and selling points. kdj indicators form a bottom W at a low level, in a strong market, kdj indicators Form M heads and shoulders at a high level, the signal availability of shipment will be enhanced.
　　
3. Data wave method. The combination of kdj indicators and data waves is a very effective method. On the K-line chart, we can often clearly identify the rising waves, three waves, and five waves. On the K-line chart, the stock price ends at the bottom and starts to rise. When the first wave is on the rise, the kdj indicator sends a delivery signal of death. At this time, we can ignore this selling signal, because it is probably an error signal or a * line signal. When the stock index runs to the third sub-wave, we will pay more attention to the selling signal. When the stock index moves to the obvious fifth sub-wave, for example, the kdj indicator gives the selling signal, we will definitely ship the goods. At this time, the signal given by the kdj indicator is usually very accurate. When the stock index has just ended rising and began to fall, the first wave of the decline will be less concerned with the buy signal of the kdj indicator, when the stock index fell by the third or fifth sub-waves, the buy signal of the kdj indicator was considered, especially the buy signal provided by the kdj indicator after the fifth sub-waves fell.
　　
4. trend line method. When the stock index or stock price enters a very strong market or extremely weak market, the stock index will form a unilateral upward trend and a unilateral downward trend; in the unilateral downward trend, the kdj index will send out the purchase letter number or low-level passivation for multiple times. If the investor operates on the purchase signal, it will be stuck too early. Some purchases at extremely low prices will continue to fall, if it is low, it can be low. To effectively solve this problem, you can add a downward trend line to the K-line chart. Before the stock index and stock price do not break the downward trend line, kdj will not consider any buying signal, only when the stock index and stock price break down the trend line, then begin to consider the kdj indicator buying signal; in the unilateral rise trend, the market trend is very strong, the stock index will often send a sell signal at a high level, according to this signal, the operator will lose a large segment of the market. We can also add an upward trend line on the daily K line. Before the stock price or stock index does not break the upward trend line, we will not consider the sales signal given by the kdj indicator, once the stock index and stock price break the rising trend line, kdj's sales signal will be firmly implemented without compromise.

Mid-term application of weekly kdj

Share Yanyun: "buying at the bottom is not moving like a mountain". In the right way, it is a way to win long-term speculation and investment in the market. Using the weekly kdj to copy the bottom, it is the best way to win a high winning percentage to do more in the bottom area. As the 9-week kdj indicator reflects the ups and downs of the stock price trend in the middle, the midline reference value of the trading signal is relatively high.

However, individual stocks that use a 9-week kdj Base copy must meet the following conditions: ① individual stocks are active and have a large shock margin.

② No obvious escape behavior at the top of the page recently.

③ Moderate plate, less than 90 million shares (preferably less than 65 million shares ).

④ Cumulative decline from the top or medium-term unilateral sharp decline is large.

Individual stocks that meet the above conditions use a 9-week kdj with extremely high accuracy. The specific signal characteristics are as follows: 1.9-week kdj had a gold transaction below 20 *, it is usually the best cut-in time (center B1 ). In general, at least a certain amount of rebound has been made in the middle and short-term.

2. When kdj is about 20 (slightly higher than 20) or about 50 *, it is often the middle and short-term bottom. Only when kdj has a relatively obvious background deviation (low share price innovation, KD indicators refuse low innovation) signal, and low double or multiple transactions, can be considered as the middle bottom (or secondary intermediate bottom) Coming (center B2 point ).

3. The J-line indicator is negative and appears for more than two weeks (usually 3-5 weeks ). Bottom passivation, often causing low rebound. Investors can consider this as the bottom of the middle and short-term, but are currently involved in the fast-forward and fast-forward, profitable operation (center B3 ). Unless there are 9 weeks of RSI, 14 weeks of RSI less than 20, or kdj low position (about 20) Bottom deviation and more than two times of kdj * more feasible * medium line signal, can be converted to the midline hold after the bottom copy.

From the classic instance of juyou Network (000693) Weekly K line, we can see the actual value of the 9-week kdj buy signal: ① B1 with a D value less than 20 is the medium-and long-term buy point. The weekly closing price for June July 25, 1997 is 6.15 yuan, the March 5, 1999 yuan for June 14.1, And the December 10, 1999 yuan for June 18.6 can be used as a medium-and long-term purchase point. Up to 21.28 yuan, 31 yuan, and 30.79 yuan respectively, with an increase of 240%, 100%, and 60%-70% respectively. After the purchase, the company quickly enters the profit state.

② At the beginning of November 2000, the stock deviated from the base near 21 yuan, and the purchase signal appeared. The top midline trial of the stock was 24.94 yuan, with a midline profit of 15-25%.

③ According to the recent bottom signal of juyou network, the closing price on June February 23, 2001 was RMB 19.2 and on June March 2 was RMB 20.2. The J value was less than zero, and the indicator was passive for two consecutive weeks and showed a medium-and short-term purchase point. The closing price on April 9 was 20.68 RMB (D value: 28.72 RMB). The double base deviation further confirmed the mid-line trend, and then tried the mid-term peak of .95 RMB on April 9, 30%, with a maximum benefit of 37%.

④ In October 26, 2001, the weekly kdj once again issued a gold payment below 20 *, rising from the lowest 15 yuan to 20.3 yuan, with a high income of 20%-30%.

Through the above analysis, we have potential for fundamentals, and the funds are well-known for individual stocks. It is entirely possible to capture the ** midline bottom and long-term bottom through the 9-week kdj. However, investors must have a great deal of patience and a firm belief in midline investment to intervene in bottom-cutting at the most ugly moment of the K-line chart. Only in this way can they achieve a high success rate and win a lot of mid-line income.

Special Analysis of kdj indicators

I. kdj analysis cycle

Day, week, month, and minute (mainly 60 minutes)
The application period of kdj with the analysis parameters less than 10 days is about 3 days (from gold * to death * 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, 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 *, the stock price may rebound sharply in the near future.

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 lasts for one month-three months (once gold * is used, 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 has a great impact on the average and strength.
Indicators and other aspects are particularly outstanding. As for the period measurement, it can usually be measured by the time span of two important low points.
To confirm. At the same time, due to the difference between long, medium, and short-term, investors must set Personalization Based on specific circumstances.
Well-known parameters, and 5 (day) or its multiples, And the feboam series are all good choices in this regard.
Select.

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 are too sensitive, and weekly or monthly indicators are obviously lagging behind. Therefore, in the application process,
This principle must be properly adapted before it can be used. This is not a simple computing problem, but requires
To be fine-tuned, although the individual indicators are absolutely consistent, good results can still be achieved.

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 for most stocks,
After all, the differences exist. The average results of the dashboard often mask a lot of truth or ignore personalization.
The parameter settings of individual stocks in the ultra-weak status are different from those in the dashboard.

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 it should be to pay attention to the gold * signal sent in a very weak zone, in particular, for the gold * with a large upward angle and fast disconnection 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 gold, 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 the signal of death in an extremely strong zone is, in particular, the downward angle can quickly fall below the 80 line of death *, the K-line form combination also clearly tells us that there is a possibility of reversal, and we should pay more attention to the significance of this death, this is probably the first signal formed on the top.

6. kdj gold * at a rate of over 20 (weak zone) and over 50 (strong zone) is an opportunity to intervene. The higher the position of K *, the greater the market significance, at the same time, you must pay attention to the kdj gold * angle. The larger the angle, the better. In addition, pay attention to the combination of K-line form and transaction volume. For example, if we saw kdj dead shortly after the high kdj gold * (more than 80 lines) was involved, investors should immediately stop the loss to prevent further losses. However, if there is no Kd value for the gold * below 20, it will be quickly removed from the 20 extremely weak zone or the K-line combination form to confirm and reverse, and there will be no significance for the multi-market.

7. kdj's kdj death * at lower than 80 (strong zone) and lower than 50 (weak zone) is a signal of departure. The higher the bit value of death *, the higher the risk of falling. However, kdj died in a very weak zone under 20. If the Kd value does not continue to decline, there is no major reference significance.

8. In the short term, the stock price will cause the continuous rise of kdj lagging behind. In this case, we should stay calm and avoid blindly chasing up. 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 gold position generated during the rebound will also be lower and lower, leading to the lower and lower kdj's dead position. In the rising market, the kdj dead * location generated during callback is getting higher and higher, causing the kdj's gold * location to 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 arrangement, and pay attention to the second gold * of kdj in the strong zone, because the second gold * 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 the same, such sales signals are acceptable *.

(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 * bottom share price is, the more strength the price increases. 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, in particular, for the gold * with a large upward angle and fast disconnection 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 gold, 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 an extremely strong zone over 80, the more important they are to die in an extremely strong zone, in particular, if the downward angle is more powerful and quickly falls below the 80-line dead *, 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 death, this is probably the first signal formed on the top of the middle and long term.

5. When the kdj indicator is running at a high position above 80 on the 89 th and starts to scatter downwards, it should immediately sell the remaining shares, and do not buy the shares easily (death * divergence should wait and see)

6. Once the kdj indicator is less than 20 RMB on the 89 th and starts to spread upwards, do not sell the stock easily until it is confirmed to be high *

(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 gold in any region under 80 * and the strong turn of J value supported by the K-line form are all signals involved in the position.

The lower the value of the gold *, the greater the market significance. At the same time, you must pay attention to the kdj gold * angle. The larger the angle, the better. In addition, pay attention to the combination of the K-line form and transaction volume. For example, if kdj becomes dead again after kdj gold * is involved, stop the loss immediately.

3. Weekly k (55 weeks) kdj's death in more than 50 regions * and the strong turn of the J value when the k form is broken are both exit stop signals. The higher the bit value of death *, 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. In the short term, the share 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 *, the higher the risk to the stock price. Similarly, the lower the bit value of kdj gold *, the more secure the rise of the stock price. In the falling market, the kdj gold * bit value generated during the rebound will also get lower and lower, resulting in the death of kdj * bit value will also get lower and lower, in the rising market, the kdj dead * bit value generated during callback is getting higher and higher, which leads to the higher the K * bit value of kdj.

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 gold * of kdj in the strong zone, because the second gold * intervention will be more meaningful than every time, there is more room for growth.

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.