What is the KD index of foreign exchange and how to use it?

Now the rich people will do foreign exchange investment, and there are many indicators in foreign exchange, do you know? How much do you know about foreign exchange index?

What is the KD index of foreign exchange? Stochastic index (KD index), also known as KD index, is suitable for technical analysis of medium and short-term stocks. Compared with the moving average, the random concept of KD line has its own advantages. The moving average is usually only calculated by the closing price, so it can not show the real amplitude of a market. In other words, the highest and lowest prices of the day or recent days cannot be reflected on the moving average. As a result, some experts have slowly created some more advanced technical theories, and made full use of the moving average. KD line is one of the representative masterpieces. The main theoretical basis of the stochastic index (KD) is: when the price rises, the closing price tends to be close to the upper end of the current price range; on the contrary, in the downward trend, the closing price tends to be close to the lower end of the current price range. In the design of random index (KD), the random amplitude of price fluctuation and the calculation of short-term fluctuation are fully considered, which makes its short-term market measurement function more accurate and effective than the moving average, and is more sensitive than the relative strength index in the prediction of short-term overbought and oversold. Therefore, this indicator is widely used by investors.


How to use the foreign exchange KD index? Usage: two lines lower than 20, and then rise to more than 20, long; two lines above 80, then fall back to 80, short;% k is higher than% d line, do long;% k is lower than% d line, short. Random shock technical indicators compare the range of prices and the closing market value of securities prices in a certain period of time. The oscillation index is displayed by double lines. The main line is called the% K line, and the second line is called the% d line. Its value is the moving average of the main line% K. %K is usually shown as a fixed curve, while line% d is shown as a point curve.

We can buy when the volatility index (k or% d) drops below a certain level (such as 20) and then rises above that level. When the index rises above a certain level (such as 80) and then falls back below that level, we can sell. We can buy when the% k curve is higher than the% d curve, or sell when the% k curve is lower than the% d curve. Look for separation points. For example: when prices continue to hit new highs, the stochastic volatility index fails to break its previous high.

See here, as an investor, do you know the foreign exchange KD index?

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