Pattern of Stock KDJ Index

KDJ indicators are also called stochastic indicators

Principle: is to use the current stock price in the near-stage share price distribution relative position to predict the possible trend reversal. It mainly uses the real amplitude of price fluctuation to reflect the strength of price movement and overbought phenomenon, a technical tool to send and sell signals before the price has risen or fallen . It was used in the analysis of the futures market, and was widely used in the short and medium-term trend analysis of stock market, which is the most commonly used technical analysis tool in futures and stock market.

First: Low gold fork, high dead fork
cliché, but I have to talk about it. As a super-buy oversold indicator, of course, the discussion is the high and low position of the stock price, so the higher and lower the fork of the Gold Fork is more valuable. to study an index, we must look at the following aspects: High, low, multi-empty balance point, divergence, periodic resonance. The world indicator is a. Specifically, kdj,20 the following gold fork Buy has a high accuracy, when the KDJ in more than 80 dead fork will have a huge decline. And such a point of intervention is basically the starting point of a wave of trends, not very short. Boulevard to Jane, but many people will ignore the fork of the fork, and go after the so-called omnipotent indicators.

Second: K, D, J value
The J-value is the strongest active in the three lines, with good orientation when witnessing inflection points. Generally speaking, J value under 0 head up and wear 0 axis, for short-term buy points, 100 above the head down and 100, for short-term selling point. In addition, K, D value as the auxiliary condition of J value, if crosses 80 line, will have very strong high warning meaning.

Third: To solve the passivation

Overbought oversold indicators have a common disadvantage, that is, there will be high passivation and low-level passivation, people are at a loss. In fact, the problem is more easily solved. First we split the class, what kind of stock will be passivated? In my opinion, there are two main categories: continuous yin and strong force.
First of all, the strong force of the empty type, the reason why this stock caused KDJ high-level passivation, is very simple, is because he in the process of the upper attack relatively small fluctuations, has been rushed. But it also makes it difficult to destroy the MA5 and MA10 two moving averages in the EMA system. Therefore, when the kdj appear high passivation, it is necessary to know the character of this type of stock, in strict accordance with the specific stock of the moving average, referring to MA5 and MA10 values and direction to operate.

The stock of the yin-fall type actually means the opposite, in the long-term suppression of the moving averages to achieve effective breakthrough to verify the effectiveness of the market.

Fourth: Periodic resonance
This is a feature that all indicators have. To understand the periodic resonance, we must first understand the process of periodic resonance formation. For example, for the lower Gold fork in the first point above: one month line level of 20 below the formation of the Gold fork, must have experienced 60 minutes 20 below the Gold fork, the daily line 20 below the Gold fork and the week line 20 below the Golden fork such a process, the trend of twist is from small cycle to large cycle spread. It should be understood that the possibility of a large cycle and a small cycle at the same bit 20 below the Gold fork resonance is too small. The so-called periodic resonance does not mean that each cycle simultaneously emits the same buy signal, but that the synergy between the various cycle patterns is summarized as follows:
1, Kdj Day, week, month line low gold fork-low start, resolutely buy
if the selected target Stock day line KDJ indicator's D value is less than 20,kdj to form a low-level gold fork, while the J-value of the weekly line KDJ below 20 up the Gold fork KD value, or in the strong zone upward movement, while the monthly line KDJ also in the low middle position, and the direction upward, can be determined to buy.　　If a stock to produce a larger market, must meet the week, Month line indicator KDJ direction upward, absolutely no exception!
2, Kdj Day Line Gold fork, week, month line high operation-face adjustment, not appropriate to intervene
if the selected target Stock day line KDJ Indicator Gold fork, and the Zhou line J value above 90, the monthly J value of more than 80 run, then, the unit is faced with intermediate adjustment, at this time the short-term intervention risk is very large, not appropriate to intervene.
3, Kdj Day Line Gold fork, week line kdj upward, month line kdj downward-rebound market, a small number of participation
if the selected target Stock day line KDJ Indicator Gold Fork, the direction of the week line kdj upward, and the kdj direction of the moon line downward, it may be rebound market, with a small amount of funds to participate.
4, Kdj Day Line Gold fork, week line KDJ downward, month line KDJ upward--main washing dish, week line reversal
if the selected target Stock day line KDJ Gold Fork, the week line kdj the direction of operation, and the direction of the kdj of the moon line is facing up, then the stock price is being tested after the plate washing, or digging pits, or the main force deliberately suppressed, can wait for the week line KDJ direction reversal after intervention.
5, Kdj Day, week, month line high running ——— risk is imminent, inappropriate intervention
if the selected target Stock day line KDJ J value is greater than 100, the KDJ J value of the weekly line is greater than 90, the monthly KDJ J is greater than 80, the risk is in front of, not to intervene.
6, Kdj Day line high running, week, month line low running-short-term callback, two times Gold fork.
(1) The week KDJ value is below 10, the monthly J value is below 20; the lower the J value, the greater the opportunity;
(2) J value from low down to upward; stock and the market have a chance!
(3) Month KDJ low---have big market, KDJ low---have intermediate market, day KDJ low---have short-term market;
(4) The monthly KDJ low---Selected stocks can be re-KDJ, the mid-position of the month---the selection of the stock can be a mid-position, KDJ high----at any time light warehouse to the empty position;
(5) Month KDJ high--there is a large-scale adjustment, the monthly J value of 80 or more, the market and stocks have plunged the risk!
Zhou Kdj High---have intermediate adjustment, J value in the week above 90; the market and stocks have a big risk of plunge!
The Daily KDJ high---has short-term adjustment, the daily J value is above 100; the market and the stocks have the risk of plunge!
(6) [month. KDJ] Indicators are all in the 80-bit dead fork downward divergence----to complete clearance!!!
(7) [Month. Sun. KDJ] All in the 20-low gold fork upward divergence-full position! (Big Chance)
(8) [Month kdj]-[week KDJ] Low-level gold fork upward; [Day kdj] high dead fork downward; buy every low
(9) [month KDJ] upward; [Week KDJ] downward--there are intermediate adjustments to empty positions! Patience wait [week KDJ] Gold fork!
(10) [month KDJ] downward; [Week KDJ] upward--only medium-term market; With a small amount of money involved.

V: Cheat Line
The stock market is a place of wits, which makes it easy for many retrace traders to be cheated. But then again, cheat line is also a law, if you can use good words, but also a more practical technical means. Today I would like to talk about the Kdj cheat line method, is the so-called middle-high will die or high-level dead fork quickly pull back operation mode. This one has caused a lot of right traders to be embarrassed, below I will give you to uncover its mysterious veil.
The conditions to be met by this method are:
1, the day Kdj Gold Fork, the stock price back to the day Yin line, preferably have a certain callback amplitude, and then re-volume upward.
2, the day line K, d two line will die fork or over 50 fast dead fork, and then with the stock price rise quickly pull back.
3, 60 Minutes line kdj Low Gold fork. It is best to correspond to the corresponding level of the three waves of the main rise wave. This method can also be applied to the analysis of the daily line-weekly line level, the same condition as the 60-minute line-day line.

Daily Line chart

60-Minute chart

Weekly Line

Judging by the trend of KDJ and stock price divergence, it is also quite practical to judge the stock price top bottom:
A, the price innovation high, and KD value is not innovative high, for the top deviation, should be sold;
B, stock price innovation is low, and KD value is not innovative low, for the bottom divergence, should buy;
C, the stock price is not innovative high, and KD value Innovation high, for the top deviation, should be sold;
D, the stock price is not innovative low, and KD value innovation is low, for the bottom divergence, should buy.

Pattern of Stock KDJ Index