Kdj: Random indicator, reflecting overbought and oversold. The technical analysis first used in the futures market is now widely used in the short-term trend analysis of the stock market. Kdj is one of the most commonly used technical analysis tools in futures and stock markets.
1.
The values of k and d fluctuate from 0 to 100: d >；; 80, the market entered the overbought stage, and the popularity was strong; D Xiao
2.
The kd indicator can not only reflect the overbought and oversold degree of the market, but also send a buying and selling signal through cross-breakthrough:
When k < D, when K-line breaks through D-line, it is a buy signal and enters an upward trend; When k>D, but when K-line breaks through D-line, it is a sell signal and enters a downward trend.
3.
Kd index is not suitable for stocks with small circulation and inactive trading, especially those with serious business.
4.
Kd index has a high accuracy for large-cap index and popular large-cap stocks. The more active the transaction, the bigger the plate, the more accurate it is.
5.
When the stochastic indicator deviates from the stock price, it is generally a signal to turn around.
6.
The rising or falling speed of K value and D value is weakened, and the inclination tends to be flat, which is an early warning signal for short-term improvement.
Rsi: Relative strength indicator, which reflects the strength of price trend with three lines and can reflect the prosperity of the market in a certain period. The theory and practice of rsi are very short-term spread operation, which is mainly used for the calculation and analysis of stock price rise and fall.
1.
Vertex 70 is usually an overbought signal and bottom 30 is usually an overbought signal.
2.
When the index or stock price hits a new high or a new low, but the rsi is not at a new high or a new low, it usually indicates that the market will reverse.
3.
Rsi shows the support level and resistance level, which is sometimes clearer than the price chart.
4.
Price trend patterns (such as double top, head and shoulder top, etc.). ), the performance of rsi is clearer than the price chart.
5.
When rsi breaks through the previous high or bottom, it means that the price may suddenly change. Like other indicators, rsi needs to be used together with other indicators, not alone.
Both kdj and rsi are important technical indicators, which have important reference significance for short-term overbought and oversold, the choice of trading points and the trend reversal.