In the case of passivation of kdj index, when the index is at a high level, the stock or index does not close at the highest point. Even if it rises that day, its index value will not only change little upward, but may also decline. On the contrary, when the indicator is at a low level, as long as it does not close at the lowest point, it is difficult for the indicator to turn its head downwards.

First, is the low passivation of kdj good? What do you think of kdj?

KDJ index, called stochastics in Chinese, is a very novel and practical technical analysis index. It 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. KDJ index reflects the strength of price trend in the market with the actual fluctuation range of stock price. 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.

Second, kdj high passivation

Kdj high passivation means that although the stock price continues to rise at a high level, its kdj index is difficult to go up and it is easy to turn its head down. When the kdj index is passivated at a high level, it shows that the technical indicators are weak and the upward pressure on the technical indicators is strong. Generally speaking, when kdj can be passivated at a high level, it is generally an obvious bull market. On the contrary, the passivation of kdj in low position is often an obvious downward trend. The high passivation of indicators can only be formed when the market strength is obvious.

Third, can kdj low passivation be bought?

1. Generally speaking, when kdj can be passivated at a high level, it is generally an obvious bull market. On the contrary, the passivation of kdj in low position is often an obvious downward trend. The high passivation of indicators can only be formed when the market strength is obvious. Take RSI as an example. Under normal circumstances, RSI index rose from low to high and exceeded 80. We believe that the market has entered the overbought stage and may fall back at any time, which is the opportunity to sell in the short term. However, some powerful stocks sometimes refuse to fall back above the high level and still rise steadily. However, the stock price may increase more and more, while the index will increase less and less.

2. The low passivation of indicators occurs when the market is extremely weak (note: the "weakness" here does not refer to the unilateral short-selling market in the case of a big bear market), which is the same as the principle of high passivation, except that the index stops falling or continues to fall in the opposite direction (the latter may also be denied as "passivation" by other technical schools, but it is called "false signal", but I think its essence is the same as passivation, just "downward" bonding).