KDJ index, also known as stochastics, is a very novel and practical technical analysis index. It was first used in the analysis of futures market, and then widely used in the short-term trend analysis of stock market. It is the most commonly used technical analysis tool in futures and stock markets.

Stochastic indicator KDJ is usually a statistical system used for stock analysis. According to the statistical principle, the immature random value RSV of the last calculation period is calculated by the highest price, lowest price and closing price of the last calculation period in a specific period (usually 9 days, 9 weeks, etc.). ) and the proportional relationship between them. Then, according to smma method, the K value, D value and J value are calculated, and the stock trend is judged by drawing.

K-line is a quick confirmation line-the value above 90 is overbought, and the value below 10 is oversold;

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.

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KDJ application principle

KDJ stochastic index is sensitive and fast, and it is a good technical index to analyze and judge the short-term trend band. 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.

Baidu Encyclopedia -KDJ Index