2. Oversold overbought area icon:
When the K line is greater than 90, the D line is greater than 80, and the J line is greater than 100 for three consecutive days, KDJ is overbought. At this time, we should consider lightening positions or waiting for short positions.
When the K line is lower than 10, the D line is lower than 20, and the J line is lower than 0 for three consecutive days, KDJ is oversold. At this time, it is ok to wait for a rebound or short-term intervention.
3.kdj operation reference:
Low gold fork: after the sideways decline, the J line runs below 20-0, and then the head turns upwards to form a gold fork, short-term reference! On the contrary, the low dead fork comes out!
High gold fork: After a period of rising, the third line of kdj is around 80, and the J line goes down the D line again, so you can add short positions! On the contrary, the high dead fork appeared, and the second dead fork also appeared!
Kdj Deviation: When the stock price rises, but kdj falls, it is a deviation from the top of the icon. Withdraw. The stock price goes down and kdj goes up, which is the bottom deviation. Can participate!
Multi-period resonance and deviation from kdj: From small level to large level, there is a golden fork resonance bargain-hunting, on the contrary, there is a dead fork, withdraw!
When the value of d hovers or crosses at 50%, pause.
Related Q&A: How to set the best parameters of kdj indicators? Hello, KDJ index is an index that mainly studies the relationship between the highest price, the lowest price and the closing price in the target period, and combines the advantages of market momentum direction, strength index and moving average. It is one of the commonly used reference indicators for short-term and medium-term transactions in financial markets. The default parameters of KDJ index of stock trading software are 9, 3 and 3 days. In KDJ technical index parameters, the smaller the adjustment of parameter index, the greater the fluctuation of index graph. Under normal circumstances, when investors adjust the technical index parameters of KDJ, they mainly adjust the number of days of the first index parameter (9 days in the default reference), and different trading cycles form different technical changes for reference. Usually in the process of short-term reference, investment will adjust the technical indicators to be more enlightening, but not too sensitive. If the index reference decreases too much and is too sensitive, more invalid technical form reference signals will appear in the technical index form. More market experience.