KDJ indicator is a technical indicator used to distinguish the strength of market trends and turning points, and is usually used for short-term trading. The high passivation of KDJ index means that after the stock price rises to a high level, the buying power gradually weakens, while the selling pressure gradually increases, resulting in the stock price falling. In technical analysis, KDJ high passivation is one of the important signals that the market is about to fall, and investors can make corresponding trading decisions accordingly.
What are the morphological characteristics of KDJ high passivation?
The morphological characteristics of KDJ high passivation are generally reflected in the stock price chart. Specifically, the stock price will rise to a certain height in the form of chasing waves. At this time, the KDJ index rose, breaking through 80 points, the stock price stopped rising, and the bulls gradually made a profit and left. Next, the market turned empty, funds entered the seller, the KDJ index fell below 20 points, and the stock price began to fall, forming a certain downward trend. At this time, some investors will choose to sell their stocks to protect their own interests.
As investors, we should follow the principle of "losing without expectation" and actively pay attention to market trends in order to make corresponding decisions before the stock price drops rapidly. In the case of high passivation of KDJ, investors are advised to take the following measures: actively diversify assets. Strengthen fund management and accurately grasp the trading points. Control the stop loss and ensure the security of the deposit. In operation, the transaction price should be strictly controlled to avoid the increase of losses caused by time and turnover. In short, the appearance of passivation signal indicates that the stock price is about to fall. Remember "don't go against the trend, don't be too aggressive", keep calm, adjust trading strategies in a planned way, and maintain stable returns in market fluctuations.