The intersection of KDJ curves can be divided into two forms: golden intersection and death intersection;
Generally speaking, there will be two or more "golden crosses" and "death crosses" on the K-line, D-line and J-line of the KDJ index during the complete rise and fall of a stock.
1. When the stock price is consolidating at a low level for a long time, and the K, D and J lines are all below the 50 line, once the J line and the K line break through the D line almost at the same time, it indicates that the stock market is about to strengthen, and the stock price decline has ended and will stop falling upward. You can buy stocks and open positions in the medium and long term. This is a form of KDJ indicator "golden cross".
2. When the stock price is in a consolidation state during a period of rising, and the K, D and J lines are hovering around the 50-line, once the J and K lines break through the D line again almost at the same time, the trading volume is released again, which indicates that the stock market is in a strong position and the stock price will rise again, so it is possible to buy more stocks or hold shares to rise, which is a form of KDJ indicator "golden fork".
3. When the previous stock price has risen for a long time, the stock price has risen a lot. Once the J line and the K line break through the D line at a high level (above 80) almost at the same time, it means that the stock market is about to turn from strong to weak, and the stock price will plummet. At this time, most stocks should be sold rather than bought, which is a form of KDJ indicator "death cross".
4. When the stock price fell after a period of time, the motivation for the stock price to rebound upward was lacking, and various moving averages exerted strong pressure on the stock price, the KDJ curve briefly rebounded to the vicinity of the 80-line, but failed to return above the 80-line. Once the J-line and K-line break through the D-line again, it means that the stock market will once again enter an extremely weak market, and the stock price will fall again, so it is another form of KDJ indicator "death cross".
Specifically, you can refer to relevant books and systems and practice with a simulation disk, so that the theory can be put into practice quickly and effectively and the skills can be mastered. Simulation software can be used to simulate the stock trading of Niugubao. Personally, I think it's not bad. Many functions in it are enough to analyze the market and individual stocks, which is helpful to use. I hope I can help you, and I wish you a happy investment!