It is the KDJ line, the K line of the stock and the three lines in the chart at the bottom of the volume. KDJ index, also known as stochastics, is a very novel and practical technical analysis index. It 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.

The KDJ index consists of three curves, the fastest moving is the J line, followed by the K line, and the slowest is the D line. Let's talk about the usage of KDJ.

1 interval. KDJ index is mainly divided into three small parts, namely below 20, between 20 and 80 and above 80. Among them, the interval below 20 is oversold; More than 80 areas are overbought areas; The area between 20 and 80 is the buying and selling balance area.

2. If the values of K, D and J are all greater than 50, it is a bull market and the market outlook is bullish; If the values of k, d and j are less than 50, it is a short market and the market outlook is bearish.

3. Three minutes later. KDJ index diagram, D curve has the slowest running speed and the lowest sensitivity; Followed by K curve, J curve is the most sensitive.

4. When J is greater than K and K is greater than D, that is, the three indicator curves are arranged in a long position, indicating that it is a long market at present; When there is a golden cross in the three indicators, the indicators send a buy signal.

5. When the three indicator curves are arranged in short positions, the short-term trend is downward; When there is a dead fork between the three curves, the indicator sends a sell signal.

6. If the intersection of KD lines fluctuates repeatedly around 50, it means that the market is being sorted out. At this time, it is necessary to observe the dynamics of KD deviation in combination with J value, and then decide the investment action.

Extended data

Stock is a certificate of ownership issued by a joint-stock company. It is a kind of valuable securities issued by a joint-stock company to all shareholders in order to raise funds. As a certificate of holding shares, it can obtain dividends and bonuses. Each share represents the shareholder's ownership of the basic unit of the enterprise. Every listed company will issue shares.

Every stock in the same category represents the equal ownership of the company. The share of ownership of the company owned by each shareholder depends on the proportion of shares held by each shareholder to the total share capital of the company.

Stock is an integral part of the capital of a joint-stock company and can be transferred and traded. It is the main long-term credit tool in the capital market, but the company cannot be required to return its capital contribution.

Reference: Baidu Encyclopedia stock