The three lines in KDJ index are K line, D line and J line. Details of the three lines are as follows: (1) K line. Usually a white line, the value range is 0 to 100. From bottom to top is a signal to buy, and from top to bottom is a signal to sell. (2) The D line, usually the yellow line, ranges from 0 to 100. When d is greater than 80, it means overbought; When d is less than 20, it means oversold. (3) j line. It is usually a purple line, and the value range can be less than 0 or greater than 100. The j indicator refers to the KD indicator to decide the sale. When j is greater than 100, it means overbought, and when it is less than 0, it means oversold. In KDJ stochastic design, the calculation of random amplitude and short-term fluctuation of price fluctuation is fully considered. Therefore, the short-term market measurement function of KDJ stochastics is more accurate and effective than the moving average. At the same time, the KDJ index is more sensitive than the strength index when predicting the short-term overbought and oversold of the market. Through the analysis of this index, we can get a clear trading point. Although KDJ stochastics can provide a simple and effective investment reference for short-term investment. However, as an investor, we should understand that it is inaccurate and unsafe to judge by a single indicator. When using technical indicators for analysis, the correct way is to combine various technical indicators or analysis methods. The meanings of the three lines in KDJ line are as follows:
K-line is a quick confirmation line-the value above 90 is overbought, and the value below 10 is oversold;
Line D is a slow trunk line-the value above 80 is overbought and the value below 20 is oversold;
J-line is a direction sensitive line. When the j value is greater than 90, especially for more than 5 consecutive days, the stock price will at least form a short-term head, while when the j value is less than 10, especially for more than several consecutive days, the stock price will at least form a short-term bottom. Extended data:
Skills of using KDJ index
The values of 1, k and d are always between 0 and 100. When d is greater than 80, the market is overbought. When d is less than 20, the market is oversold.
2. In the upward trend, when the K value is greater than the D value, when the K line breaks through the D line, it is a buy signal. In the downtrend, the K value is less than the D value, 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.