The meaning of stochastic indicator KDJ line: KD line is called stochastic indicator, K is fast indicator and D is slow indicator. When the K line breaks through the D line, it indicates an upward trend and can be bought; When the K line breaks through the D line, it can be sold. If the KD value rises above 90, it means high, and if it falls below 20, it means low. If it is too high, there is a possibility of falling, and if it is too low, there is a chance of rising.

I. Introduction

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.

Second, the use of skills

The value of 1. K and d are always between 0 and 100. When d is greater than 80, the market is overbought. When d is less than 20, the market is oversold.

2. In the upward trend, the value of k is less than the value of d, and when the K line breaks through the D line, it is a buy signal. In the downtrend, the K value is greater than the D value, and when the K line falls below the 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 the inclination tends to be flat, which is an early warning signal for short-term improvement.