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.
The value of 1. K and d are always between 0 and 100. D value > 70, the market is overbought; D value < 30, the market is oversold.
2. when the value of k > d, it shows that the current trend is rising, so when the K line breaks through the D line, it is a buy signal; When the value of K < D, it shows that the current trend is downward, so when the K line falls below the D line, it is a sell signal.
3. The intersection of K line and D line is more than 70 and less than 30, so the transaction is more reliable. If KD gold fork occurs below 20, it is the best buying point; If KD death crossover occurs above 80, it is the best selling point.
4.KD index is not suitable for stocks with small circulation and inactive trading. However, KD index is extremely accurate for large-cap stocks and popular large-cap stocks.
5. When the KD indicator deviates from the stock price, it is generally a turning point signal, and the medium-term or short-term trend may have peaked or bottomed out.
6. When the rising or falling speed of K value and D value is weakened and the inclination tends to be flat, this is an early warning signal for short-term improvement.