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.

First consider the value of KD. The range of KD is 0 ~ 100, which is divided into several areas: over 80 is overbought area, below 20 is overbought area, and the rest is wandering area.

According to this classification, if KD exceeds 80, we should consider selling, and if KD is below 20, we should consider buying. It should be noted that the above division is only a preliminary process of applying KD index, and it is just a signal. If you operate completely in this way, it is easy to lose money.

Second, consider from the shape of KD index curve. When the KD index forms a head-shoulder top shape and multiple tops (bottoms) at a higher or lower position, it is a signal to take action. Please note that these forms must appear in a higher or lower position. The higher or lower the position, the more reliable the conclusion.

Third, consider from the intersection of KD indicators. The relationship between K and D, like the relationship between stock price and MA, also has the problems of death crossover and gold crossover, but the application of crossover here is very complicated, and many other conditions are attached.

Take the bottom-up intersection of K and D as an example: K intersection D is a golden intersection and a buying signal. However, whether you should buy a gold fork depends on other conditions. The first condition is that the position of the golden fork should be relatively low, especially in the oversold area. The lower the better.

The second condition is the number of times to intersect with d, sometimes in the low position, k and d have to intersect back and forth several times. The minimum crossing number is 2, and the more the better.

The third condition is the position of the intersection point relative to the low point of KD line, which is often referred to as the "right intersection point" principle. K only intersects D when D looks up, which is much more reliable than when D is still falling.

Fourth, consider from the deviation of KD index. If KD is high or low, if it deviates from the trend of stock price, it is a signal to take action.

Fifth, the value of J index is greater than 100 and less than 0, which belongs to the abnormal price area. More than 100 is overbought, less than 0 is oversold. ☆ Individual stock prices are different. As long as you correctly master the use of this technical index, you can follow the trend!