I. Introduction to KDJ Indicators KDJ indicators, also known as stochastic indicators, were first proposed by Dr. George Lane. It 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. The colors of KDJ indicators in various softwares: K line is white, D line is yellow, and J line is purple. First, the principle and calculation method of KDJ index 1 KDJ indicator principle Random indicator KDJ generally calculates the immature random value RSV of the previous calculation period according to the statistical principle, and then calculates the K value, D value and J according to smma method through the highest price, lowest price and closing price of the previous calculation period and their proportional relationship. 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 is a technical tool that mainly uses the real amplitude of price fluctuation to reflect the strength of price trend and the phenomenon of overbought and oversold, and sends out buying and selling signals before the price rises or falls. In the design process, the relationship between the highest price, the lowest price and the closing price is mainly studied, and some advantages of the concept of momentum, power index and moving average are also integrated, so the market can be judged quickly, quickly and intuitively. Stochastics KDJ first appeared in the form of KD index, which was developed on the basis of William index. However, William indicator only judges the overbought and oversold phenomenon of stocks, while KDJ indicator integrates the concept of moving average speed, forming a more accurate basis for buying and selling signals. In practice, K-line and D-line cooperate with J-line to form KDJ index. Because KDJ line is essentially a concept of random fluctuation, it is more accurate to grasp the short-term trend of the market. 2. Calculation method of KDJ index The calculation of KDJ index is complicated. First, the periodic RSV value (n days, n weeks, etc. ) should be calculated, that is, the immature random index value, and then calculate the K value, D value, J value and so on. Taking the calculation of daily KDJ value as an example, the calculation formula is n-day RSV = (Cn-LN) ÷ (HN-LN) × 100, where Cn is the closing price on the nth day; Ln is the lowest price in n days; Hn is the highest price for n days. The RSV value always fluctuates between 1 and 100. Secondly, calculate K value and D value: K value of the day = 2/3× K value of the previous day +65438+ 0/3× D value of RSV of the day = 2/3× D value of the previous day +65438+ 0/3× K value of the previous day. If there is no K value and D value of the previous day, it can be replaced by 50 respectively. Take the KD line with a period of 9 days as an example. First, the RSV value of the last 9 days, that is, the immature random value, must be calculated. The calculation formula is RSV = (C-L9) ÷ (H9-L9) × 100 on the 9th day, where c is the closing price on the 9th day; L9 is the lowest price in 9 days; H9 is the highest price in 9 days. K value = 2/3× K value of the previous day +65438+ 0/3× RSVD value of the current day = 2/3× K value of the previous day +65438+ 0/3× K strain of the current day. If there is no K value and D value of the previous day, you can use 50 instead. J value =3* K value of the day -2* D value of the day. 2. The application of KDJ index requires KDJ stochastics to be sensitive and fast, which is a good technical index for short, medium and long-term trend band analysis and judgment. Generally speaking, for people with large funds and large bands, the KDJ value of the month is gradually absorbed when it is low; When the main force operates at ordinary times, it pays attention to the position of weekly KDJ, and judges the high and low points of the period of the mid-line band, so it often happens that the daily KDJ is repeatedly passivated unilaterally; Daily KDJ is extremely sensitive to the direction of stock price changes and is an important method of daily trading. For short-term travelers in small bands, 30 minutes and 60 minutes KDJ are important reference indicators; 5 minutes and 15 minutes KDJ can provide the best time for investors with designated trading plans to place orders immediately. The default parameter commonly used by KDJ is 9. As far as my personal experience is concerned, the short-term parameter can be changed to 5, which not only makes the response more agile, rapid and accurate, but also reduces the passivation phenomenon. Commonly used KDJ parameters are 5, 9, 19, 36, 45, 73, etc. In actual combat, different periods should also be comprehensively analyzed, and the short, medium and long trends should be clear at a glance. If there are resonance phenomena with different periods, it shows that the reliability of the trend has increased. There are four main points in the actual judgment of KDJ indicators: 1 and K-line are quick confirmation lines-the value above 90 is overbought, and the value below 10 is oversold; Line D is a slow trunk line-the value above 80 is overbought and the value below 20 is oversold; J-line is a direction sensitive line. When the j value is greater than 100, 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 0, especially for more than several consecutive days, the stock price will at least form a short-term bottom. 2. When the value of k is gradually greater than the value of d, the graph shows that the K line crosses the D line from below, indicating that the current trend is upward, so when the K line crosses the D line graphically, it is a buy signal. In actual combat, when the K line and the D line cross below 20, the signal of short-term buying is more accurate at this time; If the K value is below 50, the D value crosses from bottom to top twice, forming a "W bottom" shape with the right bottom higher than the left bottom, and the stock price may have a considerable increase in the afternoon. 3. When the value of k is gradually less than the value of d, the graph shows that the K line crosses the D line from above, indicating that the current trend is downward, so when the K line crosses the D line downward on the graph, it is a sell signal. In actual combat, when the K line and the D line cross downward above 80, the short-term selling signal at this time is more accurate; If the value of K is above 50 and the value of D breaks down from top to bottom twice, forming an "M-head" shape with the right head lower than the left head, the stock price may drop considerably in the afternoon. 4. It is also a practical method to judge the top and bottom of the stock price by the trend of KDJ deviating from the stock price: a) The stock price hit a new high, but the KD value did not hit a new high, which belongs to the top deviation and should be sold; B) the stock price is low, but the KD value is not low, which belongs to the bottom deviation and should be bought; C) The stock price has not reached a new high, but the KD value has reached a new high, which belongs to the top deviation and should be sold; D) the stock price is not low, but the KD value is low, which belongs to the bottom deviation and should be bought; It should be noted that the method of judging the deviation between the top and bottom of KDJ can only be compared with the KD value of the previous wave of high and low points, and cannot be compared with other high and low points. Iii. Application experience of KDJ indicators 1. In practice, some short-term customers often use minute indicators to judge the market outlook and decide the trading opportunity. In T+0 era, 15 minutes and 30 minutes KDJ indicators are commonly used, and in T+ 1 era, 30 minutes and 60 minutes KDJ are used to guide entry and exit. Several empirical laws are summarized as follows: 1). If KDJ is consolidating below 20 for a long time in 30 minutes, so is KDJ in 60 minutes. Once the K value crosses the D value and crosses 20 in 30 minutes, it may trigger a rebound lasting more than 2 days; If the daily KDJ indicator is also at a low level, it may be an intermediate market. However, it should be noted that it is only effective when the K value is greater than 20% of the D value after the intersection of the K value and the D value. 2. If KDJ turns down above 80 in 30 minutes, and K is below D, if it falls below 80 in 60 minutes, KDJ just crosses 20 and is less than 50, indicating that the market will turn down. KDJ may continue to rise after bottoming out in 30 minutes; 3. If the KDJ is above 80 in 30 minutes and 60 minutes, after a long period of consolidation, the K value crosses the D value at the same time, which indicates that it takes at least 2 days to start the downward adjustment of the market; 4. If the KDJ falls below 20 in 30 minutes and turns upward, and the KDJ is still above 50 in 60 minutes, it is necessary to observe whether the K value will effectively cross the D value in 60 minutes (the K value is greater than 20% of the D value), and if it is effective, start a new round of upswing; If it is invalid, it means that it is only a rebound in the process of falling, and it will continue to fall after the rebound; 5. If KDJ stops falling before 50 in 30 minutes, and KDJ just crosses upward in 60 minutes, it means that the market may continue to rise again, and it is only retreating at present; 6. The deviation of 6.KDJ in 30 minutes or 60 minutes can also be used as a basis for judging the top and bottom of the market. For details, please refer to the previous discussion on daily deviation; 7. In the super market, KDJ can reach more than 90 in 30 minutes, and the high position repeatedly appears invalid cross. At this point, the focus is 60 minutes of KDJ. When KDJ crosses downward in 60 minutes, it may trigger a short-term deep retreat; 8. In the process of plunging, KDJ can approach 0 in 30 minutes, but the general trend is still declining. At this time, we should also look at KDJ in 60 Minutes. When KDJ effectively crosses within 60 minutes, it will trigger a strong rebound. 2. When the market is in a very strong and weak unilateral market, the daily KDJ is repeatedly passivated, and the medium and long-term indicators such as MACD should be used instead; When the stock price fluctuates greatly in the short term and the daily KDJ response lags behind, CCI, ROC and other indicators should be used instead; Or use SLOWKD slow indicator; 3. The weekly KDJ parameter is generally 5, and the weekly KDJ index has obvious prompting effect on bottoming and peaking. Accordingly, band operation can save a lot of hard work and strive for maximum profit. Need to be reminded that the weekly J value generally rises in the V-shaped single bottom of the oversold area, indicating that it is only a rebound market, and the formation of a double bottom is a reliable intermediate market; However, the J value may drop sharply at the top of the overbought area. At this time, we should be vigilant and judge comprehensively with other indicators. However, when the stock market is in a bull market, the stock price will still rise sharply after the J value is overbought for a period of time. Fourth, KDJ index stock selection method If you want to make money in the stock market, you must first do a good job in stock selection. Especially for short-term operations, you don't have to look at the fundamentals of stocks, but you must look at the technical aspects. How can we choose stocks from a technical point of view? To sum up, there are six aspects, namely: shape, moving average, technical indicators, turnover, hot spots and main cost. In this issue, let's talk about the stock selection methods of Weekly KDJ and Daily KDJ. Daily KDJ is a sensitive index, which changes quickly and has strong randomness. False trading signals often occur, which makes investors feel at a loss when buying and selling according to the trading signals they send. By using weekly KDJ and daily KDJ, we can filter out the wrong buying signals and find high-quality successful buying signals. There are several options for buying points of the common golden fork stock selection methods in Weekly KDJ and Daily KDJ: 1. In practice, the early buying method often encounters such problems: because the daily KDJ changes faster than the weekly KDJ, when the weekly KDJ crosses the gold fork, the daily KDJ advances by several days, the stock price also rises by one cycle, and the buying cost increases. Aggressive investors can buy in advance to reduce costs. The pre-purchase method needs to meet the following conditions: take up the weekly line, and the hooks of the weekly lines K and D will be gold forks (not gold forks); Daily KDJ Gold Forks This week, the daily collection of gold forks is positive (if the daily KDJ Gold Forks are on the same day, the daily turnover is greater than the 5-day average, so much the better. 2. The weekly KDJ is just a golden fork, and the daily KDJ has a golden fork buying method. 3. weekly KD double-line "dying" buying method. The conditions that this method needs to meet are: after KDJ gold fork, the stock price returns to the weekly negative line and then goes up again; The weekly KD line will die, but there is no real dead fork, and the K line will open its mouth again; Daily KDJ gold fork. Buying stocks in this way can capture the rapid and strong rising market.