It is the KDJ line, the K line of the stock and the three lines in the chart at the bottom of the volume. KDJ index, also known as stochastics, is a very novel and practical technical analysis index. It was first used in the analysis of futures market, and then widely used in the short-term trend analysis of stock market. It is the most commonly used technical analysis tool in futures and stock markets.
The values of 1, k and d are always between 0 and 100. When d is greater than 70, the market is overbought. When d is less than 30, the market is oversold.
2. when k is greater than d, the trend is upward, so when k breaks through d, it is a buy signal. When the value of D is greater than the value of K, the trend falls, and when the K line falls below the D line, it is a selling signal.
3.KD indicator can not only reflect the overbought and oversold degree of the market, but also send out buying and selling signals through cross-breakthrough.
4.KD index is not suitable for stocks with small circulation and inactive trading, but KD index is extremely accurate for large-cap stocks and popular large-cap stocks.
5. When the stochastic indicator deviates from the stock price, it is generally a turning point signal.
6. The rising or falling speed of K value and D value is weakened and tends to be gentle, which is an early warning signal for short-term improvement.