The KDJ indicator, also called the stochastic indicator, is a fairly new and practical technical analysis indicator. It was first used in the analysis of the futures market, and later was widely used in the short- and medium-term trend analysis of the stock market. It is a futures and the most commonly used technical analysis tools in the stock market.
1. The K and D values ??are always between 0 and 100. When D is greater than 80, the market is overbought. When D is less than 20, the market is oversold.
2. In the upward trend, the K value is less than the D value, and when the K line breaks through the D line upward, it is a buy signal. In a downward trend, the K value is greater than the D value, and when the K line falls below the D line, it is a sell signal.
3. The KD indicator can not only reflect the degree of overbought and oversold in the market, but can also send out buying and selling signals through cross breakthroughs.
4. The KD indicator is not suitable for stocks with small circulation and inactive trading, but the KD indicator has extremely high accuracy for large-cap stocks and popular large-cap stocks.
5. When the stochastic indicator deviates from the stock price, it is generally a signal of a trend change.
6. The rising or falling speed of K value and D value weakens, and the slope tends to be gentle, which is an early warning signal for short-term trend change.
MACD is called the exponential smoothing average convergence and divergence. It is developed from the double exponential moving average. It is composed of the fast exponential moving average (EMA) minus the slow exponential moving average. The meaning of MACD Basically the same as a double moving average, but easier to read. When MACD turns from negative to positive, it is a buy signal. When MACD turns from positive to negative, it is a sell signal. When MACD changes at a large angle, it means that the gap between the fast moving average and the slow moving average widens very quickly, which represents a change in the general market trend.