The KDJ index refers to a stochastics, which consists of three lines. The three lines refer to K value, D value and J value respectively, and the colors are white, yellow and purple respectively. The advantage of this index is that it can affect the change of stock price in time. Compared with other indicators, the time lag is smaller. When we use KDJ, the most important thing is to observe the intersection of three lines of KDJ, and the range of these three lines is somewhat. Generally, the values of k and d are between 0- 100, and the values of j are below 0 or above 100, so the sensitivity is different. The sensitivity from strong to weak is j, k and d respectively. At the same time, the safety degree of J is also the worst, K ranks second, and D has the highest safety value.

Random indicator KDJ is a point formed by calculating the highest price, lowest price and closing price. The obtained K value, D value and J value are respectively on the coordinate of the indicator, and countless such points are connected to form a complete KDJ indicator that can reflect the price fluctuation trend.

It is a technical tool that mainly uses the real amplitude of price fluctuation to reflect the strength of price trend and the phenomenon of overbought and oversold, and sends out buying and selling signals before the price rises or falls. In the design process, the relationship between the highest price, the lowest price and the closing price is mainly studied, and some advantages of the concept of momentum, power index and moving average are also integrated, so the market can be judged quickly, quickly and intuitively. Because KDJ line is essentially a concept of random fluctuation, it is more accurate to grasp the short-term trend of the market.

area of application

Futures, stocks, funds, electronic spot, securities

Application principle

KDJ stochastic index is sensitive and fast, and it is a good technical index to analyze and judge the short-term trend band. Generally speaking, for people with large funds and large bands, the KDJ value of the month is gradually absorbed when it is low; When the main force operates at ordinary times, it pays attention to the position of weekly KDJ, and judges the high and low points of the period of the mid-line band, so it often happens that the daily KDJ is repeatedly passivated unilaterally; Daily KDJ is extremely sensitive to the direction of stock price changes and is an important method of daily trading. For short-term travelers in small bands, 30 minutes and 60 minutes KDJ are important reference indicators; 5 minutes and 15 minutes KDJ can provide the best time for investors with designated trading plans to place orders immediately.

Use 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 greater than the value of D. When the K line breaks through the D line, it is a buy signal. In the downtrend, the K value is less 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.