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 futures and stock markets. Stochastic indicator KDJ is usually a statistical system used for stock analysis. According to the statistical principle, the immature random value RSV of the last calculation period is calculated by the highest price, lowest price and closing price of the last calculation period in a specific period (usually 9 days, 9 weeks, etc.). ) and the proportional relationship between them. Then, according to smma method, the K value, D value and J value are calculated, and the stock trend is judged by drawing.

Application method:

1) In practice, some short-term customers, who are short, flat and quick, often use the minute indicator to judge the market outlook and decide the trading opportunity. In T+0 era, 15 minutes and 30 minutes KDJ indicators are commonly used, and in T+ 1 era, 30 minutes and 60 minutes KDJ are used to guide entry and exit. Several rules of thumb are summarized as follows:

A) If the KDJ is consolidating below 20 for a long time in 30 minutes, so is the KDJ in 60 minutes. Once the K value crosses the D value and crosses 20 in 30 minutes, it may trigger an upward trend lasting for more than 2 days; If the daily KDJ indicator also crosses at a low level, it may be an intermediate market. However, it should be noted that it is only effective when the K value is greater than 20% of the D value after the intersection of the K value and the D value.

B) If KDJ turns head down above 80 in 30 minutes, and K is below D, it will fall below 80 minutes, and KDJ just crosses 20 in 60 minutes, less than 50, indicating that the market will turn head back, and KDJ may continue to rise after bottoming out in 30 minutes;

C) If the KDJ is above 80 in 30 minutes and 60 minutes, and the K value crosses the D value at the same time after a long period of consolidation, it indicates that it is necessary to start the downward adjustment of the market for at least 2 days;

D) If the KDJ falls below 20 in 30 minutes and turns upward, and the KDJ is still above 50 in 60 minutes, it is necessary to observe whether the K value will effectively cross the D value within 60 minutes (the K value is more than 20% of the D value), and if it is effective, start a new round of upswing; If it is invalid, it means that it is only a rebound in the process of falling, and it will continue to fall after the rebound;

E) If KDJ stops falling before 50 in 30 minutes, and KDJ just crosses upward in 60 minutes, it means that the market may continue to rise again, and it is only retreating at present;

F) KDJ deviates in 30 minutes or 60 minutes, which can also be used as a basis for judging the top and bottom of the market. For details, please refer to the previous discussion on daily deviation;

G) In the super-strong market, the KDJ can reach more than 90 in 30 minutes, and the high position repeatedly appears invalid crossover. At this time, we should focus on the 60-minute KDJ. When KDJ crosses down in 60 minutes, it may lead to a short-term deep retreat;

H) During the plunge, KDJ can approach 0 in 30 minutes, but the general trend is still declining. At this time, we should also look at KDJ in 60 Minutes. When KDJ effectively crosses within 60 minutes, it will trigger a strong rebound.

2) When the market is in a very strong and weak unilateral market, the daily KDJ is repeatedly passivated, and the medium and long-term indicators such as MACD should be used instead; When the stock price fluctuates greatly in the short term and the daily KDJ response lags behind, CCI, ROC and other indicators should be used instead; Or use SLOWKD slow indicator;

3) The weekly KDJ parameter is generally 5, and the weekly KDJ index has obvious prompting effect on bottoming and peaking. Accordingly, band operation can save a lot of hard work and strive for maximum profit. Need to be reminded that the weekly J value generally rises at the V-shaped single bottom in the oversold area, indicating that it is only a rebound market, and the formation of a double bottom is a reliable intermediate market; However, the J value may drop sharply at the top of the overbought area. At this time, we should be vigilant and judge comprehensively with other indicators. However, when the stock market is in a bull market, the stock price will still rise sharply after the J value is overbought for a period of time.