Through the highest price, lowest price and closing price of the previous calculation period in a specific period (usually 9 days, 9 weeks, etc.), the immature random value RSV of the previous calculation period is calculated. ) 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.
Use skills:
The values of 1, k and d are always between 0 and 100. When d is greater than 80, the market is overbought. When d is less than 20, the market is oversold.
2. In the upward trend, when the K value is greater than the D value, when the K line breaks through the D line, it is a buy signal. 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.KD indicator 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 the stochastic indicator deviates from the stock price, it is generally a turning point signal.
6. The rising or falling speed of K value and D value is weakened and tends to be gentle, which is an early warning signal for short-term improvement.