Foreign exchange technology: application rules of KDJ random index
Technical aspects of foreign exchange: KDJ random index application rules KDJ random index is sensitive and fast, and it is a better technical index for short, medium and long term trend band analysis and judgment. Generally speaking, for people with large capital and large band, KDJ value will be gradually absorbed when the KDJ value is low in the current month; the main force usually focuses on the position of the weekly KDJ, and makes a judgment on the circulation high and low points of the central line band, so it often leads to the passive phenomenon of daily KDJ; the daily KDJ is extremely sensitive to the change direction of exchange rate, which is an important method of daily trading in and out For short-term customers with small wave band, 30 minute and 60 minute KDJ are important reference indicators; for investors who have already made an immediate order, 5-minute and 15 minute KDJ can provide the best access time.
The commonly used default parameter of KDJ is 9. In terms of my personal experience, the parameter can be changed to 5 for a short time, which not only makes the reaction more agile and accurate, but also reduces the passivation phenomenon. Generally, the commonly used KDJ parameters are 5, 9, 19, 36, 45, 73, etc. In actual combat, different periods should also be comprehensively analyzed, so that the short, medium and long trends will be clear at a glance. If the resonance phenomenon of different periods appears, the reliability of the trend will be increased. The main points of KDJ index actual combat research and judgment are as follows:
1) K line is a quick confirmation line -- over 90 is overbought and below 10 is oversold;
Line D is a slow trunk line -- over 80 is overbought and below 20 is oversold;
Line j is a direction sensitive line. When the value of J is greater than 100, especially for more than 5 consecutive days, the exchange rate will at least form a short-term head; otherwise, when J value is less than 0, especially for several consecutive days, the exchange rate will at least form a short-term bottom.
2) When the value of K gradually exceeds the value of D, the graph shows that the K line crosses the line D from the bottom, indicating that the current trend is upward. Therefore, when the K line breaks through the D line upward on the graph, it is the signal of buying.
In actual combat, when the K and D lines cross up below 20, the short-term buying signal is more accurate; if the K value is below 50 and the D value is crossed twice from bottom to top, forming a "w-bottom" shape with the right bottom higher than the left bottom, the future market exchange rate may have a considerable increase.
3) When the value of K is gradually smaller than the value of D, the graph shows that the line k crosses line D from top to bottom, indicating that the current trend is downward. Therefore, when line k breaks through line D downward on the graph, it is the signal of selling.
In actual combat, when the K and D lines cross and go down above 80, the short-term selling signal is more accurate; if the K value is above 50, and the D value is crossed twice from top to bottom, forming the "m head" shape with the right head lower than the left head, the future market exchange rate may have a considerable decline.
4) According to the trend of the deviation between KDJ and exchange rate, it is also a practical method to judge the top and bottom of exchange rate: a) the exchange rate has reached a new high, but the Kd value has not reached a new high, so it is the top deviation and should be sold B) the exchange rate is set at a record low, but the Kd value does not set a new low, so it should be bought; c) the exchange rate is not set at a new high, but the Kd value is a top deviation and should be sold D) the exchange rate did not set a record low, but Kd value set a record low, which deviated from the bottom and should be bought;
It should be noted that the method of judging the deviation between the top and bottom of KDJ can only be compared with the Kd value at the high and low points of the previous wave, and can not skip the comparison.