KDJ indicator is one of the most commonly used technical indicators for investors. It is sensitive, the trading signal is very clear, easy to learn, and deeply loved by most investors. However, it has a bad defect: the passivation of KDJ indicators at high and low levels. Due to the limitation of calculation principle, after the stock price rises or falls for a period of time, the KDJ index will become extremely slow to reflect the stock price. When the stock price continues to rise or falls sharply again, the KDJ indicator may only move slightly, which will provide an unrealistic reference indicator for our trading decision. This also makes the KDJ indicator only suitable for use when the stock price box moves. Once a stock becomes a dark horse or the market is completely bear market, the KDJ indicator will prompt premature escape or premature shovel.

This passivation phenomenon has become a bottleneck for KDJ indicators to play a normal role. For a long time, many professionals have studied various methods to solve KDJ passivation. Long-period KDJ indicators are often used to eliminate the passivation phenomenon, such as replacing daily KDJ indicators with weekly KDJ indicators, but this can not completely eliminate the passivation phenomenon of KDJ indicators. Some use monthly KDJ index or quarterly KDJ index, although it can eliminate the passivation phenomenon of KDJ index, but both monthly KDJ and quarterly KDJ (including weekly KDJ index) have false function problems, which lag behind in time and the analysis period is too long.

Specific application skills of KDJ:

The values of k, d and j in the 1.KDJ index are all less than or equal to 20. At this time, passivation has appeared, but it can only be used as a primary condition.

Second, the KDJ index of individual stocks must meet the primary selection conditions for 6 consecutive days or more. During this period, the values of k, d and j are always less than 20.

Third, recently, the volume of transactions is in a state of continuous shrinking.

4. In the last three trading days, the value of J crossed the value of K and the value of D at least once.

5. buy it when the j value is the first to wear 20.