What does the KDJ line signify? What does it mean when the KDJ line is down?

KDJ (Stochastic Index), is a commonly used technical analysis tool in Forex, ** and ** markets. It is formed by two lines on the chart, and , so it is also referred to as a line. In the design of the stochastic index integrates some advantages of the concept of momentum, strength index and moving level, and mainly studies the relationship between high and low prices and the closing price in the calculation process, that is, by calculating the real volatility of the most, lowest and closing price fluctuations of the day or the last few days, reflecting the strength and weakness of the trend and the phenomenon of overbought and oversold.

The judgment value of the overbought and oversold area is above , and the value above is the general standard of overbought. The value is below and the value is below and is the general criterion for oversold.

The purpose of the line indicator is to find the maximum deviation between the values and the leading values to find the bottom and the head. It is overbought when it is greater than , and it is oversold when it is less than .

KDJ stands for Stochastic Indicator. Principle: Use the relative position of the current stock price in the recent stock price distribution to ** possible trend reversal.

Algorithm: Find rsv (immature random value) for each trading day rsv = (** price last n day low) (last n day high** last n day low) 100 **: m1 daily moving average of rsv d line:

M2 daily moving average of k value J line: 3 d 2 k Parameters: n, m1, m2 days, general usage:

80, overbought; d<20, oversold; j>100% oversold; j<10% oversold 2Line K breaks through line D upwards, a buy signal; Line K breaks line D to **, a sell signal. 3.

The crossing of line K and line D occurs above 70 and below 30 to be valid. The indicator is not suitable for small issuance and inactive trading**; The indicator has a high degree of accuracy for ** and ** hot stocks. ]

In fact, it is not as complicated as above. It's a technical indicator. For trading reference.

When the KDJ indicator is above 80, it is overbought, and the stock price will fall at any time. 50-80 is a strong market. Fluctuations during this period are normal.

Below 50 is a drowning market. Performance: The stock price did not rise. Below 20 is oversold.

Stock price at any time**. There is also the KDJ three lines above 80, and there is a downward death fork at the high, which is theoretically a sell signal. Below 20, the upward golden cross is a ** signal.

Technical indicators are just a reference. At the same time, it is necessary to combine the fundamentals of ** and **. ]

When kdj starts to go down. It shows that this ** is about to enter the adjustment.

KDJ (ii).

In actual operation, when the KDJ is below the low position of 50, or even when the ultra-low position is about 20, once the golden fork is appropriate, it is still necessary to pay attention to one point: KDJ effective golden cross, the condition is K>=D20%, and the death fork is K<=D20%In the same week, when the daily KDJ is below 20 at the same time, the actual heavy position is held, and the medium-term position is held until the Japanese KDJ death fork is sold, which is the high-level area.

If it is **, it will be 30 minutes, 60 minutes system will be high throwing and low sucking, and there will be a longer adjustment time for the death fork above KDJ80 on the solstice.

Many shareholders understand very well that speculation is expected and speculation is the future development of listed companies, but not only to look at the company's fundamentals, but also to think about the technical aspects. As long as it comes to the technical side, most people are no strangers to MACD indicators, but they are very unfamiliar with the use of KDJ. So today, let's analyze what the KDJ indicator is, and how we should master this technical indicator to improve the fault tolerance rate of our own operations.

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3. Advantages and disadvantages of KDJ indicators.

The advantage of the KDJ indicator is that it can sensitively judge the change of stock price, and can use it as a reference standard for the best operation. However, due to the fact that the indicator reacts too quickly, sometimes ** or sell signals will be sent prematurely, which can easily lead investors to make wrong actions. So how do you find the perfect time to buy and sell?

I don't understand the specifics, as long as you still rely on yourself to look at the trend chart of KDJ, the higher the three lines, after 80--100, this **basically**!

The KDJ line chart is composed of three curves, namely **, D line and J line, ** means fast confirmation line, D line refers to slow trunk line, and J line means direction light and dark line. KDJ is the main way to judge the trend in the short and medium term. The three lines represent:

3. J line: J line is a purple line, the value range is lower than 0 or more than 100, when J is greater than 100, it is overbought, less than 0 is oversold, then you can buy and sell operations; The J indicator refers to the KD indicator before deciding to buy and sell.

Getting started with the Stochastic KDJ.

The Chinese name of the KDJ indicator is the random index, which originated from the ** market.

The application rules of the KDJ indicator KDJ indicator is three curves, which are mainly considered from five aspects when applying: the absolute number of the value of KD; the morphology of the KD curve; crossover of the KD indicator; divergence of the KD indicator; The size of the value of the j indicator.

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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.

Application rule: KDJ indicator is three curves, which are mainly considered from five aspects when applied: the absolute number of KD's value; the morphology of the KD curve; crossover of the KD indicator; divergence of the KD indicator; The size of the value of the j indicator.

Analysis of the KDJ indicator:

The first aspect is the divergence of the KD indicator. If the KD is at a high or low level, if there is a divergence from the direction of the stock price, it is a signal to take action.

In the second aspect, the value of the J indicator is more than 100 and lower than 0, both of which belong to the abnormal area of **, more than 100 is overbought, and a small 0 is oversold.

The third aspect is the value of kd. The uniform value range of KD is 0 100, which can be divided into 3 areas: above 80 is the overbought zone, below 20 is the oversold zone, and the rest is the hovering zone.

However, investors need to pay attention to the fact that this division is only a signal prompt, and cannot be completely operated according to this method of analysis.

The fourth aspect is the crossover of the KD indicator. The relationship between K and D is like the relationship between stock price and MA, and there is also the problem of death cross and ** cross.

The fifth aspect is the pattern of the KD indicator curve. When the KD indicator forms a head and shoulders pattern and multiple tops (bottoms) at a higher or lower level, it is a signal to take action. Investors here also need to pay attention to the fact that these patterns must appear in a higher or lower position, and the higher or lower the position, the more reliable the conclusion.

A brief overview, detailed can refer to the relevant aspects of the book system to learn it, and then combined with a simulation disk to practice, so that the theory and practice can quickly and effectively master the skills, the current ** treasure simulation version is not bad, there are a number of indicators to guide, each indicator has instructions on how to use, to use it has a certain help, I hope it can help you, I wish you a happy investment!

It can be helpful, but you can't just look at it, you have to look at it together with other indicators.

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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.

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.