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What is KDJ indicator Author: Unknown source: Network hits: 104 1254 Date: 2007-2-1/
The KDJ index, also known as stochastics, was first proposed by Dr. George Lan. This 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.
Principle and calculation method of KDJ index
First, the principle of KDJ index
The stochastic indicator KDJ generally calculates the immature random value RSV of the last calculation period through the highest price, the lowest price and the closing price of the last calculation period in a specific period (usually 9 days, 9 weeks, etc.). ) and the proportional relationship between them, and then calculate the K value, D value and J value according to smma method, and draw a graph to judge the stock trend.
Random indicator KDJ is a point formed by calculating the highest price, lowest price and closing price, and connecting the obtained K value, D value and J value with countless such points to form a complete KDJ indicator that can reflect the price fluctuation trend. It mainly uses the real amplitude of price fluctuation to reflect the strength of price trend and the phenomenon of overbought and oversold.
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