The application law of KDJ index KDJ index is three curves, which are mainly considered from five aspects in application: the absolute number of KD value; The form of KD curve; KD index crossing; Deviation of KD index; The value of the j index. Stochastics (KD) is suitable for technical analysis of short and medium-term stocks. The main theoretical basis of stochastic indicator (KD) is that when the price rises, the closing price tends to approach the upper end of the price range of the day; On the contrary, in the downward trend, the closing price is often close to the lower end of the price range of the day. Stochastics (KD) fully considers the calculation of the random amplitude and short-term fluctuation of price fluctuations in its design, which makes its short-term market measurement function more accurate and effective than the moving average, and more sensitive than the relative strength index in short-term overbought and oversold forecasting. RSI, relative strength index, is a technical curve based on the ratio of the sum of the rising and falling ranges in a certain period. It can reflect the prosperity of the market in a certain period. Relative strength index RSI is a method and index used to measure the relationship between supply and demand and the buying and selling power of the market. The RSI curves with different parameters are used in exactly the same way as the moving average. If the short-term RSI curve with smaller parameters is above the long-term RSI curve with larger parameters, then the current market is a bull market. On the contrary, it is a short market. Because the larger the parameters, the larger the time range of RSI calculation, so the conclusion will be more reliable. But like EMA system, we can't avoid the shortcoming of slow response, so we should pay attention to it during use.