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.

K-line is a quick confirmation line-values above 90 are overbought and values below 10 are overbought.

Line D is a slow trunk line-values above 80 are overbought and values below 20 are overbought.

J-line is a direction sensitive line. When the j value is greater than 90, 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 10, especially for more than several consecutive days, the stock price will at least form a short-term bottom.

Extended data:

Practical skills:

The values of 1, k and d are always between 0 and 100. When d is greater than 70, the market is overbought. When d is less than 30, the market is oversold.

2. In the upward trend, the value of K is less than the value of D. When the K line breaks through the D line upwards, a golden cross is formed, which is a buy signal. In the downtrend, when K is greater than D and K line falls below D line, it is a selling signal.

3.KD indicator can not only reflect the overbought and oversold degree of the market, but also send out buying and selling signals through cross-breakthrough.

4.KD index is not suitable for stocks with small circulation and inactive trading, but KD index is extremely accurate for large-cap stocks and popular large-cap stocks.

5. When the stochastic indicator deviates from the stock price, it is generally a turning point signal.

6. The rising or falling speed of K value and D value is weakened and tends to be gentle, which is an early warning signal for short-term improvement.

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