kdj indicator how to see

KDJ indicator usage is mainly based on the golden cross and dead cross, top and bottom divergence and other forms of analysis to determine the trend of the stock price, of course, investors should be combined with other technical indicators to analyze and judge, and take into account a variety of factors, including the company's fundamentals, the macroeconomic environment, the industry outlook, etc., to make a scientific and correct investment decision.

Here is

Expanded information:

One, what is the stock KDJ indicator

KDJ indicator is a technical indicator, consists of three curves, which are the K line, D line and J line. The K line is a fast stochastic indicator calculated on the basis of the closing price, the D line is a slow stochastic indicator calculated on the basis of the K line, and the J line is an indicator calculated on the basis of the K line and the D line.The KDJ indicator is widely used in stock trading to assist in the analysis and prediction of stock prices.

Two, KDJ indicator golden cross and dead cross

When the K and D lines cross, it is possible to judge the stock price movement based on their relative position and direction. If the K line crosses the D line from the bottom to the top, forming what is known as a "golden cross", it is an indication that the stock price may be trending upwards. This is often seen as a buy signal, as it signals that the stock price may be rising. On the contrary, if the K line crosses the D line from above and below, forming what is known as a "dead cross", it indicates that the trend of the stock price may be downward. This is often seen as a sell signal, as it signals that the stock price may be going down.

Three, the KDJ indicator top divergence and bottom divergence

Top divergence and bottom divergence are two terms commonly used in the KDJ indicator, which indicate an inconsistency between the price action and the KDJ indicator action. Top divergence is when the KDJ indicator does not have a corresponding high to form after the price has formed a high, indicating that the market has been overbought. This phenomenon is often seen as a sell signal, suggesting that prices may begin to fall.

Bottom divergence is when the KDJ indicator does not have a corresponding low to form after the price has formed a low, which suggests that the market has been over-sold. This phenomenon is often seen as a buy signal, suggesting that prices may begin to rise.

Four, KDJ indicator overbought oversold area

In the KDJ indicator, when the K and D lines are above 80, it indicates that the price is in the overbought area, which means that the stock price has been overpriced, and there may be a risk of adjustment or reversal. On the contrary, when the K and D lines are below 20, it indicates that the price is in the oversold zone, which means that the stock price has gone too low and there may be an opportunity for a rebound or reversal.

Fifth, KDJ indicator parameter setting skills

In the use of KDJ indicator for stock trading, the correct setup of the parameters of the indicator is very critical. The following are some of the more commonly used techniques:

Time period: Different time periods can have different effects on the KDJ indicator. Typically, short-term time periods lead to more dramatic fluctuations in the KDJ indicator, while long-term time periods lead to more moderate fluctuations in the KDJ indicator. Therefore, when choosing the time period for the KDJ indicator, you need to consider the stock's trading cycle and your own investment strategy.

Parameter settings for K, D and J values: There are various parameter settings for the KDJ indicator, and the general trading software defaults to (9,3,3). Different strategy objectives of the stockholders set KDJ indicator parameters will be different, the use of the effect is not the same. In practice, you can choose the appropriate calculation method based on personal experience and risk tolerance. Here are some reference parameter settings:

1. The daily KDJ indicator with (6, 3, 3) as the parameter is more sensitive to price fluctuations, and it changes very frequently, which is suitable for short-term investors.

2.? The daily KDJ indicator with (18, 3, 3) as the parameter, has the advantages of high sensitivity and stability, and is more suitable in most cases.

3.? Daily KDJ indicator with (24, 3, 3) as the parameter, to a greater extent, to exclude the false signals generated by price fluctuations, more suitable for medium-term investors.

Six, KDJ index of the notes

Note that the KDJ indicator is only an auxiliary tool in the stock analysis, can not be used as a basis for buying and selling stocks. It can be combined with the average indicator or RSI indicator together with a comprehensive analysis, but also use quantitative trading software (eg: jellyfish quantitative and other professional quantitative tools) for quantitative trading KDJ indicators, the use of KDJ's golden cross buy signals and triggered by the dead fork sell signals, the realization of the golden cross and the dead fork of the automated trading . At the same time, investors should consider a variety of factors, including company fundamentals, macroeconomic environment, industry outlook, etc., to make investment decisions.