KDJ index can also be called stochastics, which consists of three curves: K line, D line and J line. From the figure, we can draw that K-line, D-line and J-line are represented by different colors, in which K-line refers to quick confirmation line, D-line refers to slow trunk line, and so-called J-line refers to Fang Xiangming dark line. The fluctuation range of K value and D value is 0~ 100, while J value can be less than 0 or greater than 100, and the fluctuation range is wider. KDJ seems to have made a judgment on the short-term market trend.
The coordinate value of KDJ fluctuates between 0 and 100, and the position of the central axis is 50, so the coordinate value of 50 is also used to be called the long-short watershed. If the KDJ value exceeds 50 and diverges upward, it is considered that bulls are dominant; On the other hand, if the KDJ value is lower than 50 and diverges downward, it is regarded as empty dominance. If the stock price was sideways in a narrow range, the KDJ value fluctuated between 40 and 60, and the three lines of KDJ were repeatedly bonded and intertwined, it would be regarded as a long-short balance signal, indicating that the stock price had no direction for the time being. Investors need to wait and see and wait patiently for the direction of KDJ indicators.
Sometimes both K and D indices are lower than 10, which will only appear for one day, sometimes for several days in a row. Pay attention to buying. However, because both K and D are below 10, which is a rare extreme situation, it generally means that the stock price has fallen too much, and the short position is a spent force. It can lead to short-term technical schools copying chassis, which will bring gains.
Still need to pay attention: there are exceptions, you need to set a stop loss and be prepared for failure; And it does not apply to stocks whose fundamentals have changed dramatically and deteriorated extremely. From the scanned stocks whose K and D are lower than 10, most examples are: both K and D are lower than 10, which leads to a short-term rise or even a skyrocketing share price, with a high proportion.