Stochastics (KD) \ x0d \ x0d \ stochastics (KD) of foreign exchange class-George? This was invented by Ryan many years ago. In recent years, it has been widely used in the stock market and futures market, and can also be borrowed in the foreign exchange market. \x0d\\x0d\ two lines of %K and %D are adopted in the chart, and some advantages of momentum concept, relative strength index and moving average are integrated into the design. In the calculation process, we mainly study the relationship between the price level and the closing price, that is, by calculating the true amplitude of price fluctuations such as the highest price, the lowest price and the closing price on the same day or in recent days, we can reflect the strength of the price trend and the phenomenon of overbought and oversold. \x0d\\x0d\ its main theoretical basis is: when the price rises, the closing price tends to approach the upper end of the price range of the day; In the downward trend, the closing price is often close to the lower end of the price range of the day. As for %K line and %D line, %D is more important, mainly used to provide trading signals. \x0d\\x0d\ In the foreign exchange market, most markets close at a high price every day before the market trend turns, and the closing price is often at a low level when it falls. In the design, the stochastics amplitude of price fluctuation and the calculation of short-term fluctuation are fully considered, which makes its short-term market measurement function more accurate and effective than the moving average, and more sensitive than the relative strength index in short-term overbought and oversold. \ x0d \ x0d \ Therefore, this index plays a huge role in the stock market, futures market and foreign exchange market, including the national debt market. \x0d\\x0d\( 1) calculation method (taking 5 days as an example): \ x0d \ \ x0d \% k =100x {(c-l5)/(H5-l5)} \ x0d \ \ x0d. \x0d\\x0d\H5: the highest price in the last five days. \x0d\\x0d\L5: the lowest price in the last five days. \x0d\\x0d\H3: the sum of the last three (c-l5) numbers. \x0d\\x0d\L3: the sum of the last three (H5-L5) numbers. \x0d\\x0d\ The calculation range is 0- 100. Just find the relative position of today's closing price in all price ranges in the past five days. If it exceeds 70, it means that the closing price of the day is close to the upper end of the price range. If it is lower than 30, it means that the closing price of the day is close to the lower end of the price range. \ x0d \ x0d \ (2) Application rules: \ x0d \ x0d \% k value is above 80, and %D value is above 70, which is the general standard of overbought; The %K value below 20 and the %D value below 30 are the general standards for overselling. \x0d\\x0d\ Note: mt4 is called random \x0d\\x0d\ and sometimes a J-line is added, which is called KDJ:\x0d\\x0d\KDJ, the full name of which is random index, which was founded by GeorgeLane and integrates the advantages of momentum concept, strength index and moving average. \x0d\ trading principle: \x0d\ 1. The k value crosses from the lower right to the d value for selling, and the k value crosses from the upper right to the d value for buying. \x0d\2。 High-end products cross-checked down twice in a row, and low-end products cross-checked up twice in a row. \x0d\3。 D value 80% oversold; J > 100% overbought, J < 10% oversold. \ x0d \ 4。 When the KD value hovers around 50% or crosses, it is meaningless. \x0d\5。 Stocks that are too speculative are not applicable. \x0d\6。 You can observe the deviation between KD value and stock price to confirm the high and low points.