Stochastic indicator KDJ is usually a statistical system used for stock analysis. According to the statistical principle, the immature random value RSV of the last calculation period is calculated by the highest price, lowest price and closing price of the last calculation period in a specific period (usually 9 days, 9 weeks, etc.). ) and the proportional relationship between them. Then, according to smma method, the K value, D value and J value are calculated, and the stock trend is judged by drawing.
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. The 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.