The Chinese name of KDJ indicator is stochastics, which originated from the futures market.
The application law of KDJ index KDJ index is three curves, which are mainly considered from five aspects in application: the absolute number of KD value; The form of KD curve; KD index crossing; Deviation of KD index; The value of the j index.
First consider the value of KD. The range of KD is 0 ~ 100, which is divided into several areas: over 80 is overbought area, below 20 is overbought area, and the rest is wandering area.
According to this classification, if KD exceeds 80, we should consider selling, and if KD is below 20, we should consider buying. It should be explained
But the above division is only a preliminary process of applying KD index, and it is only a signal. If you operate completely in this way, it is easy to lose money.
Second, consider from the shape of KD index curve. When the KD index forms a head-shoulder top shape and multiple tops (bottoms) at a higher or lower position, it is a signal to take action. Please note that these forms must appear in a higher or lower position. The higher or lower the position, the more reliable the conclusion.
Third, consider from the intersection of KD indicators. The relationship between K and D, like the relationship between stock price and MA, also has the problems of death crossover and gold crossover, but the application of crossover here is very complicated, and many other conditions are attached.
Take the bottom-up intersection of K and D as an example: K intersection D is a golden intersection and a buying signal. But if there is a gold fork, should I buy it?
Entry depends on other conditions. The first condition is that the position of the golden fork should be relatively low, especially in the oversold area. The lower the better.
The second condition is the number of times to intersect with d, sometimes in the low position, k and d have to intersect back and forth several times. The minimum crossing times is 2, and the more the better.
The third condition is the position of the intersection point relative to the low point of KD line, which is often referred to as the "right intersection point" principle. K only intersects D when D looks up, which is much more reliable than when D is still falling.
Fourth, consider from the deviation of KD index. If KD is high or low, if it deviates from the trend of stock price, it is a signal to take action.
Fifthly, if the value of J index exceeds 100 and is lower than 0, it belongs to the abnormal price area. More than 100 is overbought, less than 0 is oversold.
MACD is based on smma of two indices with different speeds to calculate the deviation between them as the basis of market judgment. In fact, it is to use the signs of convergence and separation of fast and slow moving averages to judge the timing and signal of buying and selling. In practice, the MACD indicator not only has the functions of bargain hunting (when the price deviates from the MACD) and capturing the strong rising point (when the MACD turns red for the second time in a row), but also captures the best selling point to help investors escape from the top successfully. Common ways to escape from the roof are:
1, the stock price is sideways, and the MACD indicator is sold dead. It means that the stock price has been sideways after a sharp rise, forming a relatively high point, and the MACD indicator is the first to appear dead fork. Even if there is no dead fork on the 5 th and the 10 moving average, it is necessary to lighten up the position in time.
2. If the stock price does not plummet after the MACD indicator is dead, but rises again after the callback, it is often the last time the main force rises to cover the shipment, and the height is extremely limited. The high point formed at this time is often the highest point of a wave of market. The sign at the top of the judgment is the deviation of "price and MACD", that is, when the stock price hits a new high, but the MACD fails to hit a new high at the same time, the two trends deviate, which is a reliable signal that the stock price peaks.