In design, stochastic index KDJ integrates some advantages of momentum concept, relative strength index and moving average. In the calculation process, we mainly study the relationship between the price and the closing price, that is, we can reflect the strength of the price trend and the phenomenon of overbought and oversold by calculating the real range of price fluctuations such as the highest price, the lowest price and the closing price of the day or a few days.
The KDJ index consists of three curves, the fastest moving is the J line, followed by the K line, and the slowest is the D line. The following is a detailed introduction to KDJ indicators for everyone.
Calculation formula of KDJ:
Rsv= (closing price _ lowest price in n days)/(highest price in n days _ lowest price in n days) × 100
K = k = M daily moving average of RSV
Moving average of m 1 day, D=K
J=3K-2D
Rsv: Immature random value
Buying and selling principle:
The value crosses the D value from the put right, and the K value crosses the D value from the buy right.
2. High-end products have been cross-confirmed downward for two consecutive times. The low cross confirms the upward trend twice.
value
80% overbought. J> 100% overbought, J.
When the value hovers or crosses around 50%, it is meaningless.
5. stocks that are too speculative are not applicable.
6. You can observe the deviation between KD value and gold price to confirm the high and low points.
Basic application methods of KDJ:
1. When the value of k (short-term moving average) is greater than the value of d (long-term moving average), it means that the market is in a strong state, so it is a buy signal when the K line breaks through the D line graphically.
2. When the value of D is greater than the value of K, it shows that the trend is downward, so in the graph, the K-line falling below the D-line is a selling opportunity.
3. When the D value falls to 10- 15, it is the best buying opportunity, and when it is as high as 85-90, it is a selling signal.
Line d and line d will drop sharply at the high-grade intersection and rise sharply at the low-grade intersection.
5. Similar to the RSI indicator, when the price deviates from the indicator, the market reverses.