There are many different indicators, and each indicator is different in application. So what does kdj mean in the stock market? KDJ index, called stochastics in Chinese, 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.
What does kdj mean in the stock market?
KDJ index is a practical index, which can reflect the fluctuation of stock price more truly. Although the content reflected cannot guarantee that 100% is correct, the technology can only be used as an auxiliary reference, but it cannot be used as the only basis for trading; As the main calculation of market strength, finding out the buying and selling points is welcomed by the majority of investment friends.
Stock market Kdj index
Kdj index mainly studies the relationship between the highest price, the lowest price and the closing price in the design process, and also integrates some advantages of momentum concept, strength index and moving average, so it can judge the market quickly, quickly and intuitively.
How to treat kdj indicators? KDJ indicator is called stochastic indicator. There are three lines on the icon, namely K line, D line and J line. Generally, in stock trading software, this indicator is represented by three lines with different colors. The index takes into account the highest and lowest prices of stocks during the calculation period, as well as the random amplitude of stock price fluctuations; K is a fast indicator and d is a slow indicator. When the K-line breaks through the D-line, it shows an upward trend; Conversely, when the K line breaks through the D line, it can be sold.
Kdj exponent principle
The KDJ index, also known as stochastics, was first proposed by Dr. George Lan. This 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.
The stochastic indicator KDJ generally calculates the immature random value RSV of the last calculation period through the highest price, the lowest price and the closing price of the last calculation period in a specific period (usually 9 days, 9 weeks, etc.). ) and the proportional relationship between them, and then calculate the K value, D value and J value according to smma method, and draw a graph to judge the stock trend.
Random indicator KDJ is a point formed by calculating the highest price, lowest price and closing price, and connecting the obtained K value, D value and J value with countless such points to form a complete KDJ indicator that can reflect the price fluctuation trend.
It is a technical tool that mainly uses the real amplitude of price fluctuation to reflect the strength of price trend and the phenomenon of overbought and oversold, and sends out buying and selling signals before the price rises or falls. In the design process, the relationship between the highest price, the lowest price and the closing price is mainly studied, and some advantages of the concept of momentum, power index and moving average are also integrated, so the market can be judged quickly, quickly and intuitively.
Stochastics KDJ first appeared in the form of KD index, which was developed on the basis of William index. However, William indicator only judges the overbought and oversold phenomenon of stocks, while KDJ indicator combines the concept of moving average speed to form a more accurate basis for buying and selling signals. In practice, K-line and D-line cooperate with J-line to form KDJ index. Because KDJ line is essentially a concept of random fluctuation, it is more accurate to grasp the short-term trend of the market.
What is a KDJ gold fork?
For example, KDJ golden fork refers to the bottom-up intersection of K line and D line. K-line crosses D-line, forming an effective upward breakthrough, which is a golden fork and a buying signal. In the rising trend, the value of K is less than the value of D. When the K line breaks through the D line, a golden cross is formed, which is a buy signal. In the downtrend, when K is greater than D and K line falls below D line, it is a selling signal.
The KD indicator can not only reflect the overbought and oversold degree of the market, but also signal buying and selling through cross-breakthrough. When the stochastic indicator deviates from the stock price, it is generally a signal to turn around. The rising or falling speed of K value and D value is weakened, and the inclination tends to be flat, which is an early warning signal for short-term improvement. Reminder: The stock market is risky, so you need to be cautious when investing!