KD indicator ":KD indicator is simply two curves. When using KD index, investors need to consider the absolute number of KD index, as well as the intersection and deviation between KD curve shape and KD index. Below we will also explain KD indicators in detail from these four aspects. The selection period of KD index is different, and the factors considered are different, and we all explain the daily KD index.

First, KD index: the problem of value

First of all, talk about the value of KD index. The range of KD index is 0~ 100%, which is divided into several areas, overbought area and wandering area. According to the current division method, more than 80% are overbought areas, less than 20% are overbought areas, and the rest are wandering areas.

According to this classification, selling should be considered when KD exceeds 80%, and buying should be considered when KD is lower than 20%. This kind of operation is very simple, and it is also easy to make mistakes. If it is completely done, it is easy to incur losses. Most people who don't know much about KD index think that the operation of KD index is limited to this, so they misunderstand the function of KD index.

It should be said that the above division of 0~ 100% is only a preliminary process of applying KD, just a signal. The real decision to sell must also be considered from several other aspects.

Second,

KD index: curve shape

After explaining the value of KD index, let's talk about the curve shape of KD index. When KD index forms head, shoulder and multiple tops and 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 and correct the conclusion. The operation can be carried out according to morphological principles.

For the curve of KD index, we can also draw a trend line to clarify the trend of KD. The concepts of support and pressure can still be introduced into KD graphics. The breakthrough of a certain support line and pressure line is also a signal to take action.

Third,

KD Index: Crossing and Deviation

In fact, the most important KD indicator is the relationship between K line and D line, which is also the soul of KD indicator. The relationship between K-line and D-line also has the problems of death crossing and golden crossing, but the application of crossing here is very complicated and there are many additional conditions. Let's take the bottom-up intersection of k and d as an example to introduce this intersection problem.

Cross of KD index

It is correct to wear D as a gold fork on K, which is a buying signal. But whether you should buy a gold fork depends on the following three conditions.

1. The position of the golden fork should be relatively low, especially in the oversold area. The lower the better.

2. The number of times k and d intersect is sometimes in the low position, and k and d have to cross back and forth several times. The number of crossings is the least, and the more the better.

3. 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 is much more reliable when D looks up and intersects D than when D is still falling. In other words, the right intersection is better than the left intersection.

If the above conditions are met, you can rest assured when purchasing. If you encounter one less thing, you will have more risks in buying it. However, on the other hand, if every condition is met, although it is safer, it will also lose and miss many opportunities.

K's top-down breakthrough in D's dead fork has a similar result. Readers may wish to try it themselves, so I won't go into details here.

Deviation from KD index

Simply put, the deviation of KD index is the inconsistency of trend. If KD is high or low, if it deviates from the trend of stock price, it is a signal to take action.

When KD is at a high level, and two downward peaks are formed in turn, and the stock price is still rising vigorously, this is called top divergence and is a selling signal. On the contrary, KD is at a low level, the bottom is higher than the bottom, and the stock continues to fall, which constitutes a bottom deviation and is a buying signal.

In addition to the above KD operation method, several items have been added to supplement it.

1.KD, not for sale;

2. When the KD value reaches extremely high or low, such as 92% or 5%, unilateral actions can be taken regardless of other factors. It should be noted that the maximum and minimum of each stock are different, and you need to find out for yourself.

Fourth, KD index: advantages and disadvantages

Advantages of KD index

The advantage of KD index is that it considers not only the closing price, but also the latest highest price and lowest price, avoiding the weakness of only considering the closing price and ignoring the real fluctuation range. The conclusion is more reliable after using smoothing technology.

Deficiency of KD index

The deficiency of 1 and KD indicators is that KD can do nothing in some cases.

The biggest blind spot is that when KD reaches a high level after a period of time from a low point, or from a high point to a low point, it is easy to misjudge. This is my biggest advice to all stock investors who use KD indicator here: when KD reaches the low or high position from top to bottom without any twists and turns, KD indicator will form the first peak or the first trough, which is very easy to misjudge.

Another deficiency of 2.2. The KD index is passivated at the top and bottom.

Due to the limitation of the calculation formula, the KD indicators at the top and bottom reflect that the stock price is very slow, and the stock price rises or falls greatly, while the KD indicators may only move a little, which will not provide us with a reasonable price when buying and selling. But there is nothing we can do about this weakness. We should realize this deficiency of KD index and avoid making mistakes.

In addition, when the stock price enters the consolidation stage, KD indicators generally do not act.

"KD indicator": It should be noted that the KD indicator mentioned above is only for the daily line. The selection period of KD index is different, and the factors considered are also different. The use should be adjusted accordingly, and the specific number and the number of times to enter the high and low positions should be modified before use. Investors should also know that there are other formulas for calculating KD index.

What does the KD index in the stock mean? What do you think of this?

KD index is a momentum analysis method in technical analysis. This indicator predicts the time of price trend reversal by comparing the fluctuation range of closing price and price.

The full name of KDJ is stochastics, which was created by George Lan. Its comprehensive momentum concept, strength index and the advantages of moving average have been applied to futures investment for several years, and the effect is quite remarkable. At present, it is one of the most commonly used indicators in the stock 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.

1, the values of k and d are always between 0 and 100. D value > 70, the market is overbought; D value < 30, the market is oversold.

2. when the value of K > D, it shows that the current trend is rising, so when the K line breaks through the D line, it is a buy signal; When the value of K < D, it shows that the current trend is downward, so when the K line falls below the D line, it is a sell signal.

3. The intersection of K line and D line is more than 70 and less than 30, so the transaction is more reliable. If KD gold fork occurs below 20, it is the best buying point; If KD death crossover occurs above 80, it is the best selling point.

4.KD index is not suitable for stocks with small circulation and inactive trading. However, KD index is extremely accurate for large-cap stocks and popular large-cap stocks.

5. When the KD indicator deviates from the stock price, it is generally a turning point signal, and the medium-term or short-term trend may have peaked or bottomed out.

6. When the rising or falling speed of K value and D value is weakened and the inclination tends to be flat, this is an early warning signal for short-term improvement.

Extended data

KDJ indicator usage Technical indicators are easy to use and intuitive to judge, and are deeply loved by the market. In fact, although indicators can play a useful reference role, they are obviously exaggerated and even make people fall into the indicator trap. This is because the indicators are calculated according to the time and space data of volume and price, which is often a calculation process slower than the actual stock price change.

The price and quantity of the transaction are in the front, and the changes of the indicators are behind, and the indicators are often relatively lagging behind. There is a causal relationship between stock price and index. "Cause" can be derived from "cause", but "cause" cannot be traced back from "cause", so "cause" cannot be regarded as a panacea.

So don't rely too much on and superstitious indicators in actual combat. Of course, classic indicators such as KDJ, RSI, MACD and SAR still play a certain auxiliary role in actual combat.

References:

Baidu encyclopedia -KD index

What is the KD indicator?

KD refers to stochastics, which is a short-term and medium-term stock analysis technique. When the price rises, the closing price is often close to the upper end of the price range of the day. On the contrary, in the downward trend, the closing price is often close to the lower end of the price range of the day. It is more sensitive than the relative strength index in the short-term overbought and oversold forecast of the market. Therefore, this indicator is widely used by investors.

1. indicator description

apply a principle (to)

Judging from the value of k, the range of KD is 0~ 100%, which is divided into several areas, overbought area and wandering area. According to the current division method, more than 80% are overbought areas, less than 20% are overbought areas, and the rest are wandering areas. According to this classification, selling should be considered when KD exceeds 80%, and buying should be considered when KD is lower than 20%. This kind of operation is very simple, and it is also easy to make mistakes. If it is completely done, it is easy to incur losses. Most people who don't know much about KD index think that the operation of KD index is limited to this, so they misunderstand the function of KD index. It should be said that the above division of 0~ 100% is only a preliminary process of applying KD, just a signal. The real decision to sell must also be considered from several other aspects.

From the form of KD index curve

When KD index forms head, shoulder and multiple tops and 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 and correct the conclusion. The operation can be carried out according to morphological principles. For the curve of KD, we can also draw a trend line to clarify the trend of KD. The concepts of support and pressure can still be introduced into KD graphics. The breakthrough of a certain support line and pressure line is also a signal to take action.

From the horizontal view of KD index

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 there are many additional conditions. Let's take the bottom-up intersection of k and d as an example to introduce this intersection problem. It is correct to wear D as a gold fork on K, which is a buying signal. But whether you should buy a gold fork 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 number of crossings is the least, 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 is much more reliable when D looks up and intersects D than when D is still falling.

In other words, the right intersection is better than the left intersection. If the above conditions are met, you can rest assured when purchasing. If you encounter one less thing, you will have more risks in buying it. However, on the other hand, if every condition is met, although it is safer, it will also lose and miss many opportunities. Similar results are obtained for the dead fork where K breaks through D from the top down.

Judging from the deviation of KD index

Simply put, deviation is the inconsistency of trends. If KD is high or low, if it deviates from the trend of stock price, it is a signal to take action. When KD is at a high level and forms two downward peaks in turn, and the stock price is still rising vigorously, this is called top deviation and is a selling signal. On the contrary, KD is at a low level, the bottom is higher than the bottom, and the stock continues to fall, which constitutes a bottom deviation and is a buying signal. In addition to the above KD operation method, several items have been added to supplement it. First, KD, do not sell; K Second, when the KD value reaches extremely high or low, such as 92% or 5%, we can take unilateral action without considering other factors. It should be noted that the maximum and minimum of each stock are different, and you need to find out for yourself.

What does kd mean?

Kd refers to the KD index.

KD indicator: the full name of KDJ indicator, which is called stochastic volatility index in Chinese and stochastic volatility index in English, is a technical analysis indicator. It originated in the futures market and developed on the basis of WMS.

Related information:

Stochastic indicators are suitable for technical analysis of short-term and medium-term stocks. Compared with the moving average, the random concept of KD line has its own advantages. Traditionally, the moving average is only calculated by the closing price, so it can't show the real fluctuation of a market. In other words, the highest and lowest prices of the day or in recent days cannot be reflected in the moving average. Therefore, some experts have gradually created some more advanced technical theories and fully played the role of the moving average. The KD line is one of the representative works.