What are the common indicators used in technical analysis of stocks?

I. Usage:

KD is developed on the basis of WMS, so KD has some characteristics of WMS. When reflecting stock market price changes, WMS is the fastest, K is the second and D is the slowest. In the use of KD indicator, often called K indicator for fast indicators, D indicator for slow indicators. K indicator response agile, but easy to error, D indicator response is a little slower, but stable and reliable.

Second, the use of methods:

1. From the value of the KD considerations, more than 80 for the overbought area, 20 below for the oversold area, KD more than 80 should consider selling, less than 20 should consider buying.

2. KD indicator cross considerations, K on through D is a golden cross, for the buy signal, the location of the golden cross should be relatively low, is in the position of the oversold area, the lower the better. The number of crosses should be at least 2, the more the better.

3. KD indicator divergence considerations

(1) when the KD is at a high level, and the formation of two sequential downward peaks, and at this time the shares are still rising, this is called the top of the divergence is a signal to sell.

(2) when the KD is at a low level, and the formation of a bottom than a bottom high, while the shares continue to fall, this constitutes the bottom of the divergence, is a buy signal.

4. J indicator value of more than 100 and less than 0, belong to the price of non-normal areas, greater than 100 for overbought, less than 0 for oversold, and, J value of the signal will not often appear, once it appears, the reliability is quite high.

Tips:

1. short-term fluctuations in stock prices or instantaneous market amplitude is too large, the use of KD value cross signals to buy and sell, often buy at the high point, sell at the low point of the dilemma, at this time to give up the use of KD stochastic indicators, instead of CCI, ROC, BOLLINGER BANDS --- and other indicators. However, if the amplitude of fluctuations is large enough, there is still a profit after deducting the commission between buying and selling, then the screen will be changed to a five-minute or fifteen-minute graphic, and then use the KD indicator's crossover signal to buy and sell, and you can still get a little profit.

2. Extremely strong or very weak market, will cause indicators in the overbought or oversold area up and down, the K value will also issue this situation, should refer to the VR, ROC indicators, to observe whether the stock price is out of the range of the normal distribution, once determined for the extreme strength of the trend, then the K value of the ultra-buying and selling function will be out of action.

3. D value to replace the K value, will enable the function of over-buying and over-selling more effective, the general market norm, D value is greater than 80, the stock price is often down back down; D value is less than 20, the stock price is easy to go up back up. In the extreme market, the D value is greater than 90, the stock price is easy to produce instant back; D value is lower than 15, the stock price is easy to produce instant rebound.