1.KD value. The range of KD is 0- 100, which is divided into: overbought areas above 80, overbought areas below 20, and the rest are wandering areas. However, after the KD value enters the overbought or oversold area, the index will wander and be passivated, so it has no practical significance.
2.KD form. When the KD value is at a higher or lower position to form a head-shoulder top shape and multiple tops and bottoms, it is an excellent trading signal in actual combat. Morphology must appear in a higher or lower position. The higher or lower the position, the more reliable the conclusion.
3.KD crossover. It can be divided into bottom-up K and D gold forks and top-down K and D dead forks. Take the bottom-up intersection of k and d as an example. When K crosses D, it is a golden cross and a buy signal. However, the appearance of the golden fork is not necessarily a buying signal. First of all, the position of the golden fork should be relatively low, and the lower the oversold area, the better; Secondly, the number of times k and d intersect is the least, and the more the better; Finally, the position of the intersection point relative to the low point of KD line should be based on the principle of "right intersection point" K intersects D only when D looks up, which is much more reliable than when D is still falling. The market bottomed out last year 1307. On the weekly K-line chart, K and D are two golden forks, which conform to the right intersection principle.
4, KD deviation. When KD is at a high or low level, it often deviates from the stock price trend. When KD is at a high level and forms two downward peaks in turn, the stock price continues to rise at this time, which is a top deviation and a selling signal. After the market peaked at 1748 this year, it oscillated downward, and KD formed a top deviation in the overbought area; KD is at a low level and forms a bottom higher than the bottom, and the stock price continues to fall, which is a bottom deviation and a buying signal.
5, j value. If the price exceeds 100 and is lower than 0, it belongs to the abnormal price area; If it is greater than 100, it is an overbought signal; If it is less than 0, it is an overbought signal.
In actual combat, KDJ can only play the role of auxiliary judgment, mainly focusing on K-line, moving average, wave, volume and price analysis. At the same time, when using a single indicator, we should pay attention to the comprehensive judgment of daily, weekly and monthly indicators.