KDJ is a technical indicator for judging stock trends. However, in practical applications, the accuracy of KDJ indicators is not high or often fails. The reason is actually very simple. The KDJ used by the main funds is completely different from the indicator parameters used by retail investors.

But for the main force, the short-term sensitivity indicator does not require the KDJ of the daily K-line to use 15 minutes or 30 minutes to judge the indicator. K line. K line: white line, the value range is 0-100, from bottom to top it is a buy signal, from top to bottom it is a sell signal. D line: Yellow line, the value range is 0-100. When D exceeds 80, it is overbought. When D is less than 20, it is oversold. J line: Purple line, the value range is less than 0 or above 100. The J indicator is based on the KD indicator to decide whether to buy or sell.

If J is greater than 100, it is overbought, and if it is less than 0, it is oversold. At this time, buying and selling operations can be performed. But this does not mean that KDJ has no place to play. Many major funds actually use KDJ to judge trends or make swing indicators. KDJ cross: golden cross, dead cross; in the complete process of stock rising (falling), KDJ golden cross (death cross) often appears more than twice, which is an important basis for investors to enter and exit. After a period of low consolidation, after the stock price consolidates low, when the three lines K, D, and J are below 50, J, K crosses D. This is a golden cross, indicating that the stock price decline has ended and is about to become stronger. After the stock price has risen for a period of time, when the three lines K, D, and J are at 50 Fujian, J and K cross D and the trading volume is enlarged, indicating that the stock price is strong, which is another golden cross.

In an upward trend, if the value of K or D exceeds 80, it means that it is overbought, and the market outlook may decline at any time. In a downward trend, if the K value or D value is lower than 20, it means that it is oversold, and the market may rebound at any time. However, in a very strong trend, it can easily become blunted, so the index loses its signal. In addition, K crosses the D golden cross, which is bullish. K crosses below D and is bearish. However, when the K value and D value are repeatedly entangled around 50, the golden cross and the dead cross will lose their signal significance. Since KDJ is relatively sensitive, it sometimes sends out invalid signals, so K-line must be used as a verification method.