Why use the straight flush KDJ index to select stocks, and the KDJ index of the selected stocks does not give a buying signal?

The KDJ indicator of the selected stock will not give a buying signal, but it is necessary to master the usage of the KDJ indicator:

KDJ index

Principle: Use the relative position of the current stock price in the recent stock price distribution to predict the possible trend reversal.

Algorithm: Find the RSV (Immature Random Value) of each trading day.

RSV= (closing price-lowest price in recent n days)/(highest price in recent n days-

Lowest price in recent n days) × 100

K line: m 1 RSV moving average; D-line: K value of M2 moving average.

J line: 3× d-2× k

Parameter: n, M 1, M2 days, generally 9, 3, 3.

Usage:

1.D & gt80, overbought; D & lt20, oversold; J> 100% oversold; J< 10% oversold

2. The K-line breaks through the D-line and buys the signal; K line falls below D line, selling signal.

3. The intersection of K-line and D-line is only valid when it is above 70 and below 30.

4.KD index is not suitable for stocks with small circulation and inactive trading;

5.KD index is extremely accurate for large-cap stocks and popular large-cap stocks.

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