Stochastic index was initiated by george ryan. It reflects the strength of the price trend through the fluctuation range of the highest price, lowest price and closing price on the same day or in recent days. [br] The Chinese name of KDJ indicator is stochastics, which originated from the futures market. There are three lines on the graph for stochastic indicators, namely, 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. Therefore, people think that random indicators reflect the fluctuation of stock prices more truly, and their prompt function is more obvious. [br] Significance of stochastic indicator KD line: KD line is called stochastic indicator, k is fast indicator and d is slow indicator. When the K line breaks through the D line, it indicates an upward trend and can be bought; When the K line breaks through the D line, it can be sold. If the KD value rises above 90, it means high, and if it falls below 20, it means low. If it is too high, there is a possibility of falling, and if it is too low, there is a chance of rising.

Calculation of KDJ (closing price on N day-lowest price on N day) ÷ (highest price on N day-lowest price on N day) ×100 = RSV on N day [br] K value on that day = 1/3 K RSV value on the previous day+2/3; [br] 2/3+0 day D value+1/3 day K value before day D value = 65438; [br] Today's J value =3 Today's D value -2 Today's K value. The initial values of k and d are both 50. KDJ takes today's closing price (that is, the final sum price of both sides in N days) as the balance point of buying power and effort. The price distance below the closing price to the lowest price represents the size of buying power, and the price distance below the highest price to the lowest price represents the total buying power. In this way, the ratio of the purchasing power of RSV to the total power is used to represent the ratio of the purchasing power of the market since N days, reflecting the long and short situation of the market.