KDJ indicator has three lines on the graph, K line, D line and J line. In the calculation of random indicators, the highest and lowest prices in the calculation period are considered, and the random amplitude in stock price fluctuation is considered. The following are KDJ stock index skills compiled by Bian Xiao, and five basic judgments of KDJ, hoping to help you.

KDJ stock index skills, five basic judgments of KDJ

Five basic principles of judgment

1 and KD both fluctuate in the range of 0 ~ 100, and 50 is the long-short equilibrium line. If it is a multi-party market, 50 is the back support line; If you are in the empty market, 50 is the pressure line for rebound.

2. The K-line crosses the D-line at the low position as a buying signal, and the K-line crosses the D-line at the high position as a selling signal.

3. The overbought area is when the K line enters more than 90, and the overbought area is below 10; Line D is overbought when it enters above 80, and it is overbought when it enters below 20. Pay attention to the timing of buying and selling

4. The M-shaped trend of the D-line in the high-grade area is a common top shape. When the second head appears, when the K-line crosses the D-line for the second time, it is a sell signal. The W-shaped trend of D-line in low-level areas is a common bottom form. When the second bottom appears and the K line crosses the D line for the second time, it is a buy signal. If it deviates from the price trend, it is called "top deviation" and "bottom deviation" respectively, and the buying and selling signals are highly reliable.

5. The value of j can be greater than 100 or less than 0. The value of J index provides a credible judgment for whether actions can be taken according to KD trading signals. Generally, when the value of j is greater than 100 or less than 10, it is considered as the opportunity to take trading action.

KDJ index, also known as stochastics, 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 the futures stock market.

KDJ5 basic judgment principle

1 and KD both fluctuate in the range of 0 ~ 100, and 50 is the long-short equilibrium line. If it is a multi-party market, 50 is the back support line; If you are in the empty market, 50 is the pressure line for rebound.

2. The K-line crosses the D-line at the low position as a buying signal, and the K-line crosses the D-line at the high position as a selling signal.

3. The overbought area is when the K line enters more than 90, and the overbought area is below 10; Line D is overbought when it enters above 80, and it is overbought when it enters below 20. Pay attention to the timing of buying and selling

4. The M-shaped trend of the D-line in the high-grade area is a common top shape. When the second head appears, when the K-line crosses the D-line for the second time, it is a sell signal. The W-shaped trend of D-line in low-level areas is a common bottom form. When the second bottom appears and the K line crosses the D line for the second time, it is a buy signal. If it deviates from the price trend, it is called' top deviation' and' bottom deviation' respectively, and the buying and selling signals are highly reliable.

5. The value of j can be greater than 100 or less than 0. The value of J index provides a credible judgment for whether actions can be taken according to KD trading signals. Generally, when the value of j is greater than 100 or less than 10, it is considered as the opportunity to take trading action.

Second, the signal of KDJ overbought and oversold.

When the K-line value is higher than 90, the D-line value is higher than 80, and the J-line value is higher than 100 for three consecutive days, it is called KDJ overbought, which indicates that the stock price has entered the overbought area and the short-term callback probability is high. Shareholders temporarily consider lightening their positions to avoid risks, and short positions continue to wait and see to avoid blindly chasing high.

Practical skills of KDJ index

The practical skills of KDJ index mainly focus on the "golden fork" and "dead fork" of KDJ index, as well as the position and running direction of KDJ curve. The trading and wait-and-see functions of KDJ indicators are revealed by taking the daily parameter of (89,9, 12) in analyst software as an example.

First, analysis of intersection point of KDJ curve

(A) buy signal

1. When the stock price is in the middle and low level for a long time and the KDJ curve hovers in the middle (near 50), once the J line and the K line in the KDJ curve break through the D line almost at the same time, the stock price breaks through the medium and long-term moving average of the stock price with a relatively large volume, which means that the stock market is about to strengthen and the stock price will rise in a short time, which is a kind of "golden cross" in the KDJ index. At this point, investors should buy short-term stocks in time.

2. When the stock price is consolidating in the middle and high level during the rising period, and the K, D and J lines are hovering around the 80th 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 in a short time. This is another form of the KDJ indicator "golden fork", that is, the high-level golden fork near the 80th line. At this point, investors can buy stocks for a short time.

(2) Selling signal

1. When the stock price has risen for a long time in the previous period, the stock price has risen sharply. Once the J-line and the K-line break through the D-line at the high position (near 80) almost at the same time, the stock price also falls below the short-term moving average, which indicates that the stock market is about to turn from strong to weak, and the stock price will plummet. This is a kind of "death cross" of KDJ indicators, that is, the high dead fork near 80. At this point, investors should sell most of the shares in time.

2. When the stock price falls for a long time and lacks the motivation to rebound upward, and the long-term moving average exerts strong pressure on the stock price, the KDJ curve rebounds briefly, but it fails to return to the line above 80. However, when the J-line and the K-line break through the D-line again near 50, and the stock price is suppressed by the short-term moving average, it indicates that the stock market has entered an extremely weak market and will fall further, which is another form of the "death cross" of the KDJ indicator. At this point, you can sell the remaining stocks or wait and see.

Second, the location and running direction of KDJ curve

(1) signal to increase the shareholding.

1. When the KDJ curve breaks through 80, if the KDJ curve has been running in the area above 80, it means that the stock price is in a strong rising market, which is a signal that the stock is waiting to rise from the KDJ indicator. If the stock price also rises on the short-term moving average, this shareholding signal is more obvious. At this point, investors should firmly hold the stocks to be increased in the short term.

2. When the three curves in the KDJ curve run upward at the same time, it shows that the stock price is in a strong rising market, which is also a signal from KDJ that the shareholding is waiting to rise. As long as the K-line and J-line in the KDJ indicator do not fall below the D-line, and the running direction of the D-line is always upward, investors can hold shares all the way.

(2) Holding currency wait-and-see signals

After the 1.KDJ curve breaks through 50, if the KDJ curve has been running in the area below 50, it means that the stock price is in a weak decline, which is a signal that the stock price is waiting to rise. If the stock price is also suppressed by the short-term moving average, this wait-and-see signal is more obvious. At this point, investors should resolutely hold the currency and wait and see.

2. When the KDJ curve dies in the middle and high level (above 50), if the three curves diverge downwards at the same time, it means that the stock price is in a weak downward market, which is also a wait-and-see signal sent by the KDJ indicator. At this point, investors should resolutely hold shares and wait and see. This kind of shareholding signal is more obvious. At this point, investors should firmly hold the stocks to be increased in the short term.

Analysis of KDJ principle

Stochastics's design ideas and calculation formulas are derived from William Theory, but they are more valuable than William Index. It is composed of three curves, K, D and J, and some advantages of momentum index, intensity index and moving average are integrated in the design. In the calculation process, we mainly study the relationship between the price level and the closing price, that is, by calculating the true amplitude of price fluctuations such as the highest price, the lowest price and the closing price of the day or in recent days. The calculation of random amplitude and short-term fluctuation of price fluctuation is fully considered, which makes its short-term market measurement function more accurate and effective than the moving average, and more sensitive than the relative strength index RSI when the market is overbought and oversold in the short term. In short, KDJ is a concept of random fluctuation, which reflects the strength of price trends and band trends, and is very sensitive to the grasp of short-term market trends.