Theoretically, the lead of KDJ index is mainly reflected in the speed of reflecting the stock price, which belongs to a strong overbought area near 8, and the stock price has certain risks; 5 is the wandering area; Near 2, it is a safer area, belonging to speculation area, which can open positions, but because of its faster speed, it often causes more frequent buying and selling signal errors; MACD indicator basically moves synchronously with the market price, which increases the requirements and restrictions of sending signals, thus avoiding the appearance of false signals.
The advantage of combining the two methods to judge the market is that it can more accurately grasp the short-term buying and selling signals of KDJ indicators. At the same time, due to the midline trend reflected by the characteristics of MACD indicators, the medium and short-term fluctuations of stock prices can be judged by using two indicators. Example: KDJ of a stock hit a low level at the beginning of the month, while MACD bottomed out at the end of the month with the share price. When KDJ and MACD diverge synchronously at the beginning of the second month, the buying signal at this time is very easy to grasp. After 1 days, when KDJ begins to passivate at a high level, MACD is still moving upward, indicating that the upward kinetic energy still exists, but there will be some adjustment in the short term.
from these aspects, we can see that when the MACD keeps its original direction, the stock price will still run according to the set trend when the KDJ indicator is overbought or oversold. Therefore, in operation, investors can use this to judge whether the market is adjusting or reversing, and at the same time, they can appropriately avoid the risk of short-term adjustment in order to gain short positions.
and observing the stock, the current sideways adjustment is coming to an end, and it can be seen that MACD is still maintaining its original upward trend, and the KDJ indicator is about to form a golden cross above 5 after adjustment, which indicates that the stock price still has a chance to rise again in the short term. Generally speaking, for judging the short-term trend, the buying and selling signals issued by KDJ need to be verified by MACD. Once both of them issue the same instruction, the buying and selling accuracy will be higher.
For details, please refer to the relevant books and systems to learn about it, and at the same time combine it with a simulation disk to practice, so that you can master the skills quickly and effectively. At present, Niu Gubao's simulation of stock trading is not bad, with a lot of comprehensive knowledge, which is helpful to use. If you are not sure, you can also follow the cattle people in the cattle people list, which is much safer. I hope it can help you and wish you a happy investment!