MACD, called exponential smooth homogeneous average, is developed from double exponential moving average. By subtracting the slow exponential moving average from the fast exponential moving average (EMA), the meaning of MACD is basically the same as that of the double moving average, but it is easier to read. When MACD turns from negative to positive, it is a buy signal. When MACD turns from positive to negative, it is a signal to sell. When the MACD changes at a large angle, it means that the gap between the fast moving average and the slow moving average expands very quickly, which represents the change of the market trend.

KDJ, also known as stochastics, was founded by Dr. George Ryan (George

Lane) is a quite novel and practical technical analysis index, which 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.

Application rules of KDJ index

KDJ index is three curves, which are mainly considered from five aspects when applied: the absolute number of KD; The form of KD curve; KD index crossing; Deviation of KD index; The value of the j index.