With the development of stock market analysis technology, KD index gradually evolved into KDJ index, thus improving the ability of KDJ index to analyze the market.
The j value of futures watch software (taking Wenhua Finance as an example) is generally between 0- 100, while the j value of stock watch analysis software may be below 0 or above 100. Here, futures analysis is the main method.
When ordinary investors use this indicator, KD indicator is more commonly used than KDJ indicator, and J value is often ignored without in-depth analysis. In fact, J value is an index worthy of attention. Its change from 0 to 100 is very subtle, which can play an important guiding role in judging the market. Here mainly from two aspects to explain.
(1) long and short steering change indication
When the value of j directly changes from a value below 30 to a value above 70, it means that the market will idle more;
When the value of j directly changes from a value higher than 70 to a value lower than 30, it means that the market will turn from more to less;
The greater the range of numerical change, the stronger the long-short change.
(2) Signs of strengthening long and short trends
When the KDJ index continues to rise, and the J value reaches 100, if it continues at 100, it shows that the bullish power is strengthening and the price will continue to rise;
When the KDJ indicator continues to decline and the J value enters the value of 0, if it continues to be at the value of 0, it means that the short-selling power is strengthening, and the short-selling power is strengthening, and the price will continue to fall;
3, to solve the defects of a single index-combined with K-line analysis
Any technical index has its defects and limitations. KDJ unilaterally passivated the blind spot of shorting, which made many investors either miss further market or do reverse trading prematurely. KDJ indicator is a technical indicator, which is often used to judge the market. Its advantage is that it is sensitive to future price changes, and sensitivity is its disadvantage. There are many ways to solve the defects caused by a single index, and the author thinks that combining K-line to judge can improve the accuracy of judgment to the greatest extent. The specific usage method is as follows:
When the K-line of the indicator gold fork (or dead fork) is the big Yang line (or big Yin line), the J value at this time is higher than 70 (or lower than 30), and the reliability of buying (or selling) is relatively strong.
In addition, there are many ways to use KDJ, such as deviation method, amplification method, morphology method, wave number method, trend line method, etc., and no further analysis is made here. In fact, the most important thing is to analyze the K-line, because most other indicators are calculated according to the four prices of the K-line (closing, opening, highest price and lowest price).