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Advantages, disadvantages and functions of KDJ
KDJ stochastic 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. Therefore, people think that random indicators reflect the fluctuation of stock prices more truly, and their prompt function is more obvious. The meaning of random indicator KD line: KD line is called random indicator, K is fast indicator and D is slow indicator. When K line breaks through D line, it indicates an upward trend and can be bought; K-line can be sold when it breaks through D-line, KD value rises above 90 to represent high, and below 20 to represent low. If it is too high, there is a possibility of falling, and if it is too low, there is a chance of rising.

In practice, some short-term, flat and fast short-term customers often use minute indicators 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 KDJ is consolidating below 20 for a long time within 30 minutes, so is KDJ within 60 minutes. Once the value of K exceeds the value of D and exceeds 20 within 30 minutes, it may trigger an upward trend lasting for more than 2 days; If the daily KDJ indicator is also 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 down above 80 in 30 minutes, the K value goes below the D value, and falls below 80, 60 minutes, KDJ just passes 20 and is less than 50, indicating that the market will turn down, and after KDJ bottoms out in 30 minutes, it may continue to rise;

(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 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 exceed the D value (the K value is more than 20% of the D value) in 60 minutes, 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) The deviation of KDJ in 30 minutes or 60 minutes 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 a super-strong market, the KDJ can reach more than 90 in 30 minutes, and the high position repeatedly appears invalid crossover. At this point, the focus is 60 minutes of KDJ. When KDJ crosses downward in 60 minutes, it may trigger a short-term deep retreat;

(h) During the plunge, KDJ can be close to zero within 30 minutes, but the overall trend is still declining. At this time, we should also look at KDJ in 60 Minutes. When KDJ effectively crosses upward within 60 minutes, it will trigger a strong rebound. /view/ 18929 1.htm? fr=ala0_ 1_ 1