KDJ formed a dead fork, that is, KDJ's "dead fork", which means that when J line runs on K line and D line, it suddenly turns down and crosses K line and D line. The emergence of this form often means that the stock price will fall at least in the short term.

Therefore, KDJ "dead fork" is a typical selling form. But at this time, investors should comprehensively analyze the trend of KDJ's "dead fork" and confirm whether the stock price will reverse downward for a long time.

Where is the origin of KDJ indicator?

KDJ index, also known as stochastics in Chinese, originated in the futures market and was invented by George Lane. Stochastics KDJ first appeared in the form of KD index, which was developed on the basis of William index. The KD index only judges the phenomenon of overbought and oversold of stocks, while the KDJ index combines the concept of moving average speed to form a relatively accurate trading signal base. In practical application, K-line, D-line and J-line cooperate to form KDJ index. In design, KDJ index focuses on the relationship between high point, low point and closing price, and also incorporates some best aspects of momentum concept, intensity index and moving average. Therefore, it can study the market quickly, quickly and intuitively. It is widely used to analyze the short-term trend of the stock market. It is the most commonly used technical analysis tool in futures and stock markets.