Lane) is a quite novel and practical technical analysis index, which was first used in the analysis of futures market, and then widely used in the short-term trend analysis of stock market. It is the most commonly used technical analysis tool in futures and stock markets.
KDJ exponent principle
The stochastic indicator KDJ generally calculates the immature random value RSV of the last calculation period through the highest price, the lowest price and the closing price of the last calculation period in a specific period (usually 9 days, 9 weeks, etc.). ) and the proportional relationship between them, and then calculate the K value, D value and J value according to smma method, and draw a graph to judge the stock trend.
Random indicator KDJ is a point formed by calculating the highest price, lowest price and closing price, and connecting the obtained K value, D value and J value with countless such points to form a complete KDJ indicator that can reflect the price fluctuation trend. It is a technical tool that mainly uses the real amplitude of price fluctuation to reflect the strength of price trend and the phenomenon of overbought and oversold, and sends out buying and selling signals before the price rises or falls. In the design process, the relationship between the highest price, the lowest price and the closing price is mainly studied, and some advantages of the concept of momentum, power index and moving average are also integrated, so the market can be judged quickly, quickly and intuitively.
Stochastics KDJ first appeared in the form of KD index, which was developed on the basis of William index. However, William indicator only judges the overbought and oversold phenomenon of stocks, while KDJ indicator combines the concept of moving average speed to form a more accurate basis for buying and selling signals. In practice, K-line and D-line cooperate with J-line to form KDJ index. Because KDJ line is essentially a concept of random fluctuation, it is more accurate to grasp the short-term trend of the market.