Exponential shows that Slowed KD smoothes D again on the basis of KD, and the smoothing tool chosen this time is moving average instead of exponential smoothing. K in slow KD is D in KD, and D in slow KD is the moving average of the values of D in KD. As we know, smooth is slower than smooth, so the essence of slow KD is no different from KD. "

In terms of the value of k, the range of KD is 0~ 100%, which is divided into several areas, overbought area and wandering area. According to the current division method, more than 80% are overbought areas, less than 20% are overbought areas, and the rest are wandering areas. According to this classification, selling should be considered when KD exceeds 80%, and buying should be considered when KD is lower than 20%. This kind of operation is very simple, and it is also easy to make mistakes. If it is completely done, it is easy to incur losses. Most people who don't know much about KD index think that the operation of KD index is limited to this, so they misunderstand the function of KD index. It should be said that the above division of 0~ 100% is only a preliminary process of applying KD, just a signal. The real decision to sell must also be considered from several other aspects.

Judging from the shape of the KD index curve, when the KD index forms a head and shoulders top and a plurality of tops and bottoms at a higher or lower position, it is a signal to take action. Please note that these forms must appear in a higher or lower position. The higher or lower the position, the more reliable and correct the conclusion. The operation can be carried out according to morphological principles. For the curve of KD, we can also draw a trend line to clarify the trend of KD. The concepts of support and pressure can still be introduced into KD graphics. The breakthrough of a certain support line and pressure line is also a signal to take action.

From the horizontal view of KD index

The relationship between K and D, like the relationship between stock price and MA, also has the problems of death crossover and gold crossover, but the application of crossover here is very complicated and there are many additional conditions. Let's take the bottom-up intersection of k and d as an example to introduce this intersection problem. It is correct to wear D as a gold fork on K, which is a buying signal. But whether you should buy a gold fork depends on other conditions.

The first condition is that the position of the golden fork should be relatively low, especially in the oversold area. The lower the better.

The second condition is the number of times to intersect with d, sometimes in the low position, k and d have to intersect back and forth several times. The number of crossings is the least, and the more the better.

The third condition is the position of the intersection point relative to the low point of KD line, which is often referred to as the "right intersection point" principle. K is much more reliable when D looks up and intersects D than when D is still falling. In other words, the right intersection is better than the left intersection. If the above conditions are met, you can rest assured when purchasing. If you encounter one less thing, you will have more risks in buying it. However, on the other hand, if every condition is met, although it is safer, it will also lose and miss many opportunities. Similar results are obtained for the dead fork where K breaks through D from the top down.

Judging from the deviation of KD index

Simply put, deviation is the inconsistency of trends. If KD is high or low, if it deviates from the trend of stock price, it is a signal to take action. When KD is at a high level and forms two downward peaks in turn, and the stock price is still rising vigorously, this is called top deviation and is a selling signal. On the contrary, KD is at a low level, the bottom is higher than the bottom, and the stock continues to fall, which constitutes a bottom deviation and is a buying signal. In addition to the above KD operation method, several items have been added to supplement it.

First, K>d, not for sale; K

Second, when the KD value reaches extremely high or low, such as 92% or 5%, we can take unilateral action without considering other factors. It should be noted that the maximum and minimum of each stock are different, and you need to find out for yourself.