Do you buy kdj high passivation?
1.kdj high passivation, ok?
In a balanced market or a downward trend, as long as the KDJ indicator enters the overbought area, it needs to be ready to sell. Once there is high passivation, we must resolutely clear the warehouse and ship it. However, in the main rising market, the application principle of KDJ index is just the opposite. When the KDJ indicator is repeatedly passivated at a high level, investors can firmly hold shares and maximize the profit of the main rising wave. When the KDJ indicator falls into the oversold area, investors should be alert to the end of the main rising wave market.
Second, how to solve passivation?
1, that is, look at the deviation, especially the indicator deviates many times; Deviation of various indicators. Deviation occurs when the trend of stock price is opposite to that of index. If the indicator has been passivated in the overbought and oversold area for many days, we should pay more attention to the deviation phenomenon at this time.
2, is to increase the parameters of indicators, so that indicators are not too sensitive.
3. Wait for the indicator value to fall below the strong area before trading. For example, if an indicator is passivated above 80, wait until it falls below 80 or 75 before selling the stock. There are many stocks that are seriously overbought and will fluctuate in high and strong areas. If the stock is sold at this time, investors will lose some profits.
4. It is a combination of indicators and indicators. When RSI, KDJ and other short-term indicators are passivated, they lose their reference value. In practice, in order to avoid mistakes, investors can use a combination of short-term indicators and medium-and long-term indicators for trading.