How to distinguish KDJ line? What is the KDJ line

Red is the J line, yellow is the D line, and white is the **. When K is above 90, it is overbought, and when it is below 10, it is oversold. The D line is the slow trunk line, and a value above 80 is overbought, and below 20 is oversold.

The KDJ indicator cannot be used alone, but should be combined with other trend analysis.

KDJ indicator, also known as stochastic indicator, is based on the relative position of the current stock price in the recent stock price distribution to determine the possible trend reversal. It is mainly a technical tool that uses the real volatility of the ** fluctuation to reflect the strength of the ** trend and the overbought and oversold phenomenon, and sends a buy and sell signal before the ** rises or falls.

It was first used for market analysis, and then was widely used for short- and medium-term trend analysis, and is the most commonly used technical analysis tool in the market. The color of the KDJ indicator in various software: ** is white, D line is yellow, J line is purple.

Provide detailed explanations of practical application.

The color is not a distinguishing logo, there is a word logo on it, a KD line.

The Chinese name of the KDJ indicator, also known as the stochastic indicator, first originated in the ** market and was pioneered by George Lane. The stochastic indicator KDJ first appeared in the form of the KD indicator, which was developed on the basis of the Williams indicator. However, the KD indicator only judges the overbought and oversold phenomenon of **, and the KDJ indicator integrates the concept of moving flat speed to form a more accurate basis for buying and selling signals.

In practice, ** is used with the D line and the J line to form the KDJ indicator.

In the design process of the KDJ indicator, the relationship between the highest, lowest and highest prices is mainly studied, and some advantages of the momentum concept, strength indicator and moving flat are also integrated. Therefore, it can be judged quickly, quickly and intuitively, and is widely used in short- and medium-term trend analysis, and is the most commonly used technical analysis tool in the market.

The KDJ indicator has a total of three lines on the chart, **, D, and J. The stochastic indicator takes into account the most advanced and lowest price in the calculation period, and takes into account the random amplitude in the stock price fluctuation, so it is believed that the stochastic indicator more truly reflects the fluctuation of the stock price, and its prompting effect is more obvious.

The KD line is called the Stochastic indicator, K is the fast indicator (yellow), D is the slow indicator (blue), and the red line is the J line.

KD is a stochastic indicator, which is a technical analysis tool commonly used in Europe and the United States, and it is also quite suitable for technical analysis in the short and medium term. Stochastic indicators integrate the concept of momentum, strength and weakness indicators and the advantages of the moving level, with a strong line of practice, stochastic indicators generally through a specific period (often 9 days) in the occurrence of the most, lowest and the last day of the price to calculate the last day of the immature random value.

**：

**, the English name is futures, which is completely different from spot, spot is a real tradable goods (commodities), **mainly not goods, but a standardized tradable contract with a certain mass product such as cotton, soybeans, oil, etc. and financial assets such as **, bonds, etc. Therefore, this subject matter can be a certain commodity (e.g., **, **, agricultural products) or a financial instrument. The settlement day can be a week later, a month later, three months later, or even a year later.

The KDJ line chart is composed of three curves of different colors, of which the white line represents **, the yellow line represents the D line, and the purple line represents the J line.

The full name of KDJ indicator is stochastic indicator, which is mainly used to predict the future trend of stock prices, and is a very important and necessary indicator when it comes to the first time. The activity range of KDJ is 100, which can be divided into oversold area, oversold area and hovering area according to the different value range of KDJ.

When the value of K, D, and J lines is below 20, it is oversold and is a ** signal; When the value of K, D, and J lines is above 80, it is an overbought area, which is a sell signal; When the values of K, D, and J are between 20 and 80, investors are mainly wait-and-see. When the value of K, D, and J lines is around 50, it indicates that the forces of the long and short sides are in a state of equilibrium, and when the value of K, D, and J lines is greater than 50, it indicates that in the long and short contest, the long side has an advantage, and the chance is greater in the later stage, and on the contrary, when the value of the K, D, and J lines is less than 50, it indicates that in the long and short contest, the short side has the advantage, and the chance of the late stage is greater.

**Breaking through the D line upwards to form a golden cross, accompanied by a volume increase, is a signal, on the contrary, ** breaking down through the D line to form a death fork, and the volume shrinking is a sell signal.

When the D line in the KDJ indicator and the stock price chart form a bottom divergence, it indicates that in the long-short contest, the bulls begin to exert force, and the stock price will be at the bottom, which is a signal, and conversely, when the stock price trend forms a top divergence, it is a sell signal.

KDJ golden cross: that is, ** and D line cross at a low level, and then ** break through the D line upward, and the J line also breaks through at the same time, indicating that the ** momentum of the stock price in the short term has an enhanced trend, which is a bullish ** signal; If the pattern appears at a low level below 50, it means that the stock price has just entered the **** at this time, and there is still a lot of room for ** in the future, and the bullish signal of the pattern will be stronger at this time.

KDJ Death Cross: ** and the D line cross at a high level, and then ** begins to turn downwards and cross the D line, which is a sell signal at this time. Therefore, when you see ** turning your head at a high position, you should be cautious at this time. If the high death fork is formed, be sure to take profit and stop loss in time.

KDJ divergence: that is, the stock price is getting lower and lower, but the low point of the KDJ indicator is getting higher and higher, which is called bottom divergence, which is a kind of signal; The stock price is getting higher and higher, and the KDJ indicator high is getting lower and lower, which is called the top divergence, and the market outlook is bearish.

The advantage of this indicator is obvious, that is, it is very sensitive to stock price fluctuations and has a high degree of accuracy, which is especially suitable for ** traders. It is this level of sensitivity that also leads to the disadvantage of this indicator, that is, it often fails when the stock price fluctuates sharply. Blind spot for unilateral passivation of short squeezing or chasing and killing.

**Unilateral trend**, the KDJ indicator will continue to be in the overbought area, which may make many investors sell in advance, or the stock price may be small**, causing the KDJ indicator to fall quickly and sharply from the high level, causing panic among investors.

KDJ indicator, also known as stochastic indicator, is a fairly novel and practical technical analysis indicator, which was first used for market analysis, and was widely used in short- and medium-term trend analysis, and is the most commonly used technical analysis tool in the market.

Stochastic index KDJ is commonly used in statistical systems for analysis. According to statistical principles, the immature randomness of the last calculation period is calculated by the price of the highest and lowest and the last calculation period that occurred in a certain period (usually weeks). and the proportional relationship between them.

value rsv, then calculate the k, d, and j values according to the smoothed moving average method, and plot the curve to judge the ** trend.

1. How to look at the J line:

When the J value is greater than 90, especially for more than 5 consecutive days, the stock price will form at least a short-term top; Conversely, when the J value is less than 10, especially for more than a few consecutive days, the stock price will form at least a short-term bottom. Therefore, the J line has become a ruler for judging ****.

Second, the meaning of the J line represents:

In the KDJ indicator, the J line is a direction-sensitive line, and its upper and lower running speed is faster, often ahead of the ** and D line, so the direction of the J line often becomes the "pioneer" of the KDJ indicator, and the J line becomes the most critical line for judging the ** and trend change.

3. KDJ application:

1. Generally speaking, the D line is a ** signal from bottom to top, and from top to bottom is a sell signal.

2. KD fluctuates in the range of 0 100, and 50 is the long-short equilibrium line. If you are in a multi-sided market, 50 is the support line for the retracement; If you are in a bearish market, 50 is the upper line.

3. Crossing the D line at a low level is a signal, and crossing the D line at a high level is a sell signal.

4. **Entering more than 90 is the overbought area, and below 10 is the oversold area; The D-line enters the overbought zone above 80 and the oversold zone below 20. It is advisable to grasp the timing of buying and selling.

5. The M-shaped trend of the D line in the high-end area is a common top pattern, and the second head appears and the second time it crosses the D line is a sell signal.

The W-shaped direction of the D-line in the low-end area is a common bottom pattern, and the second bottom appears and the second time it crosses the D-line.

When the second part of the M-shaped or W-shaped appears, if it diverges from the direction of **, it is called separately"Top back"with"Bottom back", buy and sell signals are extremely credible.

6. The J value can be greater than 100 or less than the indicator to provide a credible judgment on whether the KD buying and selling signal can be acted upon. Usually, when the J value is greater than 100 or less than 10, it is considered the time to take a buy or sell action.

7. KDJ is essentially a random fluctuation indicator, so the value of n in the calculation formula is usually small, 5 to 14 is appropriate, and it can be selected according to the characteristics of the market or commodity. However, applying KDJ to weekly or monthly charts can also be used as a medium- to long-term tool.