In the process of analyzing KDJ, the author has always emphasized the sensitivity of this index. In fact, this sensitivity also exists in other technical indicators, but too many investors use KDJ, which increases its vibration. This leads to higher and higher sensitivity of this index. In the past, people used random indicators to calculate the immature random value of the last day through the highest price, the lowest price and the closing price of the last day in a specific period (often 9 days) and the proportional relationship between them. However, the calculation of KDJ by smma method is often very random, and the reliability of J value is the worst, because it is too sensitive, followed by K value and D value is slightly stable. Because KD is born out of William indicator, it also has the ability of William indicator to prompt overbought and oversold phenomenon. In practice, when the K line crosses the D line in the low position, it is called "golden fork", which is a short-term signal to grab orders; When the K-line falls at a high level and crosses the D-line, it is also called a dead fork, which is a signal to attract gold. In this process, the J-line often shows a rising and falling trend ahead of KD, just like the starting gun in the hands of the referee on the sports field, athletes can't get up and run before the gun goes off, otherwise it will be illegal and will be punished, but once the gun is raised, athletes must keep scrambling. For example, before the start of 3 1 65438 last on February last year, KDJ bottomed out at the moment of sinking, then the J line bottomed out, and then crossed the D line with the K line to form a "golden cross", and then looked at the William indicator, it also bottomed out at this time. When the two cross, a round of rebound is ready.

Application essentials: KDJ index random index is sensitive and fast, and it is a good technical index for short, medium and long-term trend band analysis. Generally speaking, for people with large funds and large bands, the KDJ value of the month is gradually absorbed when it is low; When the main force operates at ordinary times, it pays attention to the position of weekly KDJ and judges the high and low points of the mid-line band, so the daily KDJ is often passivated unilaterally; Daily KDJ is extremely sensitive to the direction of stock price changes and is an important method of daily trading. For short-term travelers in small bands, 30 minutes and 60 minutes KDJ are important reference indicators; 5 minutes and 15 minutes KDJ can provide the best time for investors with designated trading plans to place orders immediately. The default parameter commonly used in KDJ is 9. As far as my personal experience is concerned, the short-term parameter can be changed to 5, which not only makes the response more agile, rapid and accurate, but also reduces the passivation phenomenon. Commonly used KDJ parameters are 5, 9, 19, 36, 45, 73, etc. In actual combat, different periods should also be comprehensively analyzed, and the short, medium and long trends should be clear at a glance. If * * * vibration occurs in different periods, the reliability of the trend will increase. There are four main points in the actual judgment of KDJ indicators:

(1) K line is the quick confirmation line-the value above 90 is overbought, and the value below 10 is overbought; Line D is a slow trunk line-the value above 80 is overbought and the value below 20 is oversold; J-line is a direction sensitive line. When the j value is greater than 100, especially for more than 5 consecutive days, the stock price will at least form a short-term head, while when the j value is less than 0, especially for more than several consecutive days, the stock price will at least form a short-term bottom. (The article was collected by China, a stock search company)

(2) When the value of k is gradually greater than the value of d, the graph shows that the K line crosses the D line from below, indicating that the current trend is upward, so when the K line crosses the D line graphically, it is a buy signal.

In actual combat, when the K line and the D line cross below 20, the signal of short-term buying is more accurate at this time; If the K value is below 50, the D value crosses from bottom to top twice, forming a "W bottom" shape with the right bottom higher than the left bottom, and the stock price may have a considerable increase in the afternoon.

(3) When the value of k is gradually less than the value of d, the graph shows that the K line crosses the D line from above, indicating that the current trend is downward, so when the K line crosses the D line downward on the graph, it is a sell signal.

In actual combat, when the K line and the D line cross downward above 80, the short-term selling signal at this time is more accurate; If the value of K is above 50 and the value of D breaks down from top to bottom twice, forming an "M-head" shape with the right head lower than the left head, the stock price may drop considerably in the afternoon.

(4) It is also a practical method to judge the top and bottom of the stock price by the trend of KDJ deviating from the stock price: (a) The stock price has reached a new high, but the KD value has not reached a new high, which belongs to the top deviation and should be sold; (b) The stock price is low, but the KD value is not low, which belongs to the bottom deviation and should be bought; (c) The stock price has not reached a new high, but the KD value has reached a new high, which belongs to the top deviation and should be sold; (d) The stock price is not at a new low, but the KD value is at a new low, which is a bottom deviation and should be bought; It should be noted that the method of judging the deviation between the top and bottom of KDJ can only be compared with the KD value of the previous wave of high and low points, and can not be compared by jumping over.