If the third line of kdj is above 80, it is overbought and should be sold.

Below 20, oversold, should buy.

It is recommended not to look at these indicators, which are all backward indicators. The stock has been up for a few days, or just sent a buy signal at the end of the rebound.

The stock had fallen for several days or was about to rise again before the sell signal was issued.

KDJ index, also known as stochastic index, is an index to calculate the immature random value RSV of the last calculation period through the highest price, lowest price, closing price of the last calculation period and their proportional relationship in a specific period (usually 9 days, 9 weeks, etc.). ) According to the statistical principle, calculate the K value, D value and J value according to smma, and draw a graph to judge the stock trend.

The Chinese name of KDJ indicator, also known as stochastic indicator, originated from the futures market and was initiated by George Ryan. Stochastics KDJ first appeared in the form of KD index, which was developed on the basis of William index.

However, the KD indicator only judges the overbought and oversold phenomenon of stocks, while the KDJ indicator combines the concept of moving average speed to form a more accurate basis for buying and selling signals. In practice, K-line and D-line cooperate with J-line to form KDJ index.

In the design process, KDJ index mainly studies the relationship between the highest price, the lowest price and the closing price, and also integrates some advantages of momentum concept, power index and moving average.

Therefore, it can judge the market quickly, quickly and intuitively, and is widely used in the short-term trend analysis of the stock market. It is the most commonly used technical analysis tool for futures and stock markets.

Random indicator KDJ is a point formed by calculating the highest price, lowest price and closing price, and connecting the obtained K value, D value and J value with countless such points to form a complete KDJ indicator that can reflect the price fluctuation trend.

It is a technical tool that mainly uses the real amplitude of price fluctuation to reflect the strength of price trend and the phenomenon of overbought and oversold, and sends out buying and selling signals before the price rises or falls.

In the design process, the relationship between the highest price, the lowest price and the closing price is mainly studied, and some advantages of the concept of momentum, power index and moving average are also integrated, so the market can be judged quickly, quickly and intuitively. Because KDJ line is essentially a concept of random fluctuation, it is more accurate to grasp the short-term trend of the market.