What exactly does the KDJ indicator mean? KDJ indicator is the abbreviation of stochastics, which originated from the futures market. It consists of three curves, which generally need to be paid attention to in application: KD value, curve shape, intersection point of indicators, deviation of indicators and value of J indicator.

The absolute value range of KD is 0 ~ 100, which is divided into several areas: over 80 is overbought area, below 20 is oversold area, and the rest is wandering area. Generally speaking, KD & gt80 can be considered for sale, KD.

The index value of J 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. Generally speaking, when the value of j is ~ 100, especially when it is greater than 100 for three consecutive days, the price often appears short-term head; When the value of j is ￠0, especially when it is less than 0 for three consecutive days, the price often appears short-term bottom again.

Note: The cross application of KD index mentioned above includes the following three situations: (1)K crosses D from bottom to top, for example, K crosses D is a golden cross, which is a buy 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; (2) The number of intersections with D is sometimes at a low level, and K and D have to intersect back and forth several times. Crossing at least 2 times, the more the better; (3) 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.