principle
Random indicator KDJ is a point formed by calculating the highest price, lowest price and closing price, and connecting the obtained K value, D value and J value with countless such points to form a complete KDJ indicator that can reflect the price fluctuation trend. It is a technical tool that mainly uses the real amplitude of price fluctuation to reflect the strength of price trend and the phenomenon of overbought and oversold, and sends out buying and selling signals before the price rises or falls. In the design process, the relationship between the highest price, the lowest price and the closing price is mainly studied, and some advantages of the concept of momentum, power index and moving average are also integrated, so the market can be judged quickly, quickly and intuitively. Because KDJ line is essentially a concept of random fluctuation, it is more accurate to grasp the short-term trend of the market.
Calculation method
The calculation of KDJ is 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. Taking the calculation of daily KDJ value as an example, the calculation formula is as follows
Rsv for n days = (cn-ln) ÷ (HN-ln) ×100.
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 the values of k and d:
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.
J value =3* K value of the day -2* D value of the day.
Taking the KD line with a period of 9 days as an example, that is, the immature random value, the calculation formula is
No.9 RSV = (C-L9) ÷ (H9-L9) × 100
In the formula, C is the closing price on the 9th day; L9 is the lowest price in 9 days; H9 is the highest price in 9 days.
K value = 2/3× K value on the 8th day +65438+ 0/3× RSV on the 9th day.
D value = 2/3× D value on the 8th day +65438+ 0/3× K value on the 9th day.
J value =3* days 9 K value -2* days 9 D value
If there is no K value and D value of the previous day, you can use 50 instead.
Use skills
The value of 1. K and d are always between 0 and 100. When d is greater than 70, the market is overbought. When d is less than 30, the market is oversold.
2. In the upward trend, the value of K is greater than the value of D. When the K line breaks through the D line, it is a buy signal. In the downtrend, K is less than D, and when K line falls below D line, it is a selling signal.
3.KD indicator can not only reflect the overbought and oversold degree of the market, but also send out buying and selling signals through cross-breakthrough.
4.KD index is not suitable for stocks with small circulation and inactive trading, but KD index is extremely accurate for large-cap stocks and popular large-cap stocks.
5. When the stochastic indicator deviates from the stock price, it is generally a turning point signal.
6. The rising or falling speed of K value and D value is weakened, and the inclination tends to be flat, which is an early warning signal for short-term improvement.
Exponential analysis
Facing the unpredictable China stock market, it is very necessary to learn and accurately use relevant technical indicators for stock analysis, which can help us better grasp the rules and start operations. Today, I will introduce you to stock trading from five aspects and analyze KDJ indicators.
The first aspect is the deviation of KD index. If KD is high or low, if it deviates from the trend of stock price, it is a signal to take action.
Secondly, if the value of the J index exceeds 100 and is lower than 0, it belongs to the abnormal price area. More than 100 is overbought, less than 0 is oversold.
The third aspect is the value of KD. The unified value range of KD is 0 ~ 100, which is divided into three areas: over 80 is overbought area, below 20 is overbought area, and the rest is wandering area. But what stock investors need to pay attention to here is that this division is only a signal hint, and it cannot be completely operated by this analysis method.
The fourth aspect is the intersection of KD indicators. The relationship between k and d is the same as that between stock price and MA, and there are also problems of death cross and gold cross.
The fifth aspect is the shape of KD index curve. When the KD index forms a head-shoulder top shape and multiple tops (bottoms) at a higher or lower position, it is a signal to take action. [2] What stock investors need to pay attention to here is that these forms must appear in a higher position or a lower position. The higher or lower the position, the more reliable the conclusion.