Calculate 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 among them, and then calculate the K value, D value and J value according to smma's method, and draw a graph to judge the stock trend.
tips:
1. the values of k and d are always between and 1. When D is greater than 8, the market is overbought. When D is less than 2, the market is oversold.
2. In the uptrend, when the K value is greater than the D value, it is a buy signal when the K line breaks through the D line. In the downtrend, the K value is less than the D value, and when the K line falls below the D line, it is a selling signal.
3. The KD index can not only reflect the overbought and oversold degree of the market, but also send out buying and selling signals through cross-breakthrough.
4. KD index is not suitable for stocks with small circulation and inactive trading, but KD index is extremely accurate for large-cap stocks and popular large-cap stocks.
5. When a stochastic indicator deviates from the stock price, it is generally a signal of a turnaround.
6. The rising or falling speed of K value and D value is weakened, and the inclination tends to be gentle, which is an early warning signal of short-term turnaround.
RSI is a relative strength indicator, which is an indicator to analyze the intention and strength of market buying and selling by comparing the average closing increase and average closing decrease of stocks in a period of time, so as to make an analysis of future market trends.
risk disclosure: this information is organized according to the internet, and does not constitute any investment advice. Investors should not replace their independent judgment with this information or make decisions only based on this information, and it does not constitute any trading operation and does not guarantee any income. If you operate by yourself, please pay attention to position control and risk control.