KD indicator: the full name of KDJ indicator, which is called stochastic oscillation indicator in Chinese and Stochastics oscillator in English, is a technical analysis indicator. It originated in the futures market and developed on the basis of WMS.

Theoretical basis:

The main theoretical basis of stochastic indicator (KDJ) is that when the price rises, the closing price tends to approach the upper end of the price range of the day; On the contrary, in the downward trend, the closing price is often close to the lower end of the price range of the day.

Stochastic indicator (KDJ) fully considers the calculation of the random amplitude and short-term fluctuations of price fluctuations in its design, making its short-term market measurement function more accurate and effective than the moving average, and more sensitive than the relative strength indicator in short-term overbought and oversold market prediction. Therefore, this indicator is widely used by investors.