What are the similarities and differences between KDJ and RSI?

Hello, the difference between kdj indicator and rsi indicator:

1, different concepts.

RSI was first used in futures trading. Later, it was found that using this index to guide stock market investment was also very effective, and the characteristics of this index were constantly summarized and summarized. Now, RSI has become one of the most widely used technical indicators for investors.

KDJ index, also known as stochastics, is a very novel and practical technical analysis index. It was first used in the analysis of futures market, and then widely used in the short-term trend analysis of stock market. It is the most commonly used technical analysis tool in futures and stock markets.

2, the calculation method is different

RSI indicator calculation formula: n days RSI =N days average closing increase /(N days average closing increase +N days average closing decrease) × 100.

From the above formula, we can know the technical meaning of RSI index, that is, more upward force and downward force. If the upward force is greater, the calculated index will rise; If the downward force is greater, the index will fall, thus measuring the strength of the market trend.

The calculation of DJ is more complicated. First of all, we have to calculate the RSV value of the period (n days, n weeks, etc. ), that is, the immature random index value, and then calculate the K value, D value, J value, etc. Take the calculation of KDJ value in n days as an example, and the calculation formula is RSV = (CN-LN)/(HN-LN) × 100 in n days.

In the formula, Cn is the closing price on the nth day; Ln is the lowest price in n days; Hn is the highest price for n days. Secondly, calculate K value and D value: K value of the current day =2/3× K value of the previous day +65438+ 0/3× RSV of the current day. D value of current day = 2/3× D value of previous day +65438+ 0/3× K value of current day. If there is no K value and D value of the previous day, you can use 50 instead.

3, the application rules are different.

KDJ index application rules: index >；; 80 o'clock, the probability of returning to the file is high; If the index is less than 20 points, the rebound probability is high. When %K crosses %D upward near 20, it is regarded as a buy signal. When %K crosses %D down near 80, it is regarded as a sell signal. When% J> is at 100, the stock price is easy to reverse and fall; % J<0, the stock price is easy to reverse.

Any signal that KDJ fluctuates around 50 has no effect. The switch parameter %J: 0 means no drawing, 1 means %J=3D-2K, and 2 means %J=3K-2D.

Application rules of RSI index: RSI & gt20 overbought; RSI & lt20 is oversold. RSI takes 50 as the center line, above 50 as a long market, and below 50 as a short market. When RSI is above 80, it is considered as a downward reversal signal when M-head or head-shoulder-top shape is formed.

When the RSI is lower than 20, the W bottom or the head-shoulder bottom is formed, which is regarded as an upward reversal signal. When RSI breaks through its high point connection, buy; When RSI falls below the low line, sell.

Risk disclosure: This information is compiled according to the Internet and does not constitute any investment advice. Investors should not substitute such information for their independent judgment or make decisions only based on such information, and such information does not constitute any trading operation and does not guarantee any income. If you operate by yourself, please pay attention to position control and risk control.