1. Considering the shape of KD index curve. When the KD index forms a head-shoulder top shape and multiple tops (bottoms) at a higher or lower position, it is a signal to take action. Please note that these forms must appear in a higher or lower position. The higher or lower the position, the more reliable the conclusion.
2. Consider from the intersection of KD indicators. The relationship between K and D, like the relationship between stock price and MA, also has the problems of death crossover and gold crossover, but the application of crossover here is very complicated, and many other conditions are attached.
3. Take the bottom-up intersection of K and D as an example: K wearing D is a golden fork and a buying signal. However, whether you should buy a gold fork depends on other conditions. The first condition is that the position of the golden fork should be relatively low, especially in the oversold area. The lower the better.
4. The second condition is the number of intersections with d .. Sometimes in the low position, k and d have to cross back and forth several times. The minimum crossing times is 2, and the more the better.