Tips for using the weekly KDJ indicator_How to read the KDJ indicator
The KDJ indicator, also known as the stochastic indicator, is a technical analysis tool that is common in the stock market and futures market. The weekly line is the K-line of the week. The opening price on Monday is the opening price of the weekly line. Below are the tips for using the weekly KDJ indicator compiled by the editor. It is for reference only and I hope it can help you.
Tips for using the weekly KDJ indicator
The KDJ indicator consists of three lines: K, D, and J. It mainly uses the principles of statistics and generally reflects the trend of the stock in the form of a curve chart. . The KDJ indicator uses the actual fluctuation range of stock prices to reflect the strength of the price trend in the market.
The use of weekly and KDJ indicators
The KDJ indicator is a classic technical analysis indicator in the stock market. The weekly KDJ indicator can predict whether an intermediate market will occur or not. Once the weekly line forms a buy signal, an intermediate-level or above rising market will break out. If you buy with other technical indicators, the midline will definitely make a profit. Every time the weekly KDJ appears a dead cross at a high level, there will be an obvious downward trend. Every time the weekly KDJ appears a golden cross at a low level, there will be a good downward trend.
As for how to read the stock KDJ line? The KDJ line chart is composed of three curves of different colors. The white line represents the K line, the yellow line represents the D line, and the purple represents the J line. The value of the J line changes the most. Quick, as a confirmation line, it mainly confirms the buying and selling signals sent by the K line and D line. The activity range of KDJ is 100. According to the different value ranges of KDJ, it can be divided into oversold zone, oversold zone and wandering zone.
How to read the kdj indicator
When investors use the KDJ indicator as a technical analysis, they can start from the K value range, D value range, J value range of the KDJ indicator and the KDJ indicator. Start the analysis with the golden cross and dead cross.
The KDJ indicator consists of lines in three colors: yellow, green, and purple. The yellow one is K, the green one is D, and the purple one is J. Their value range is 0-100. In terms of sensitivity, J is the most sensitive, K is second, and D is the worst; in terms of safety, J is the worst, K is second, and D is the safest.
The value range of KDJ is in different areas, and the signals it sends are different. When the three values ????of K, D, and J are below 20, it is an oversold zone, and the signal sent is buy; K, D If the three values ????of K, D, and J are above 80, it is an overbought zone, and the signal sent is to sell; if the three values ????of K, D, and J are between 20 and 80, it is a wandering zone, and the signal sent is wait and see. When K, D, and J are near 50, it indicates that the forces of the long and short parties are in balance.
What does kdj passivation mean
KDJ passivation phenomenon: when the market rises or falls for a long period, the market continues to rise or fall, but the KD indicator is above 80 or 20 following passivation. When encountering a very strong rising or falling trend, the KD value is prone to passivation. At this time, the D value can be used to replace the K value, or the overbought and oversold zone can be relaxed to above 90 or below 10.
How about kdj passivation
If the K value, D value and J value in the KDJ indicator are less than or equal to 20 at the same time, passivation phenomenon has occurred at this time, but it can only be used as an initial Select conditions. Indicator passivation means that when the swing indicator is in an overbought or oversold position for a long time, it will lose its original role in guiding buying and selling opportunities. To put it simply, when the market is in a certain overbought or oversold unilateral market for a long time, the indicators will become meaningless and cannot be used to show the market trend, which means that the indicators will become passivated.
In the in-depth study and judgment of KDJ indicators, the study and judgment of the curve shape: M head or triple top, the stock price turns from strong to weak; W bottom and triple bottom, the stock price turns from weak to strong. If the stock price curve also shows the same shape, it will be more certain. The increase can be judged by morphological theories such as W head or triple bottom. Generally speaking, the accuracy of M head and triple top forms in the KDJ curve is greater than that of W bottom and triple bottom.