Coping skills of KDJ index passivation in crude oil investment
Because KDJ index is very sensitive, it often gives some miscellaneous information. These signals are easy to mislead crude oil investors into thinking that there is a purchase signal or a shipping signal, and then the operation is wrong. If we amplify one level to confirm the reliability of this signal, it will have better effect. If the low-level golden cross of KDJ index is generated on the daily K-line chart, it can be magnified to the weekly chart. If the gold cross is also generated at the low position on the weekly chart, it will be considered that the signal is reliable and can be operated boldly. If the weekly chart shows that it is on the way down, then the reliability of the gold crossing on the daily chart is not strong, which may be the main deception method. At this time, the wait-and-see method can be used.
Due to the sensitivity of KDJ index, the index given by it is often ahead of time. Therefore, we can find out the correct buying point and selling point by observing the form of KDJ index. The KDJ index can be purchased when the low level forms w bottom, triple bottom and head shoulder bottom shape. In a strong market, when the KDJ index forms m head and head shoulder top at a high level, the signal reliability of shipment will be strengthened. In particular, it should be noted that the accuracy of the back pressure line formed by KDJ is higher than that of RSI.
The combination of KDJ index and numerical wave is a very effective method. On the K-line diagram, one wave, three wave and five wave in ascending form can be clearly distinguished. On the K-line chart, crude oil prices end at the end of the bottom and begin to rise. When the first wave rises, the KDJ indicator will send out a dead cross shipping signal. At this time, we can less consider this selling signal, because it is likely to be a wrong signal or a fraud signal
When the crude oil price enters a very strong or weak market, the crude oil price will form a unilateral upward trend and a unilateral downward trend; In the unilateral downward trend, in order to effectively solve the problem of KDJ passivation, a downward trend line can be added to the K-line chart. Before the crude oil price breaks the down trend line, any buying signal sent by KDJ will not be considered. Only when the crude oil price breaks the downward trend line, the buying signal of KDJ index can be considered; In the unilateral upward trend, the market trend is extremely strong, and the crude oil price will often send out a sell signal at a high level. According to this signal, the operator will lose a large part of the market, and can also add an upward trend line on the daily K line. Before the crude oil price breaks the upward trend line, the selling signal given by KDJ index is not considered. Once the crude oil price breaks the upward trend line, KDJ will give the selling signal If there is a signal, we will resolutely implement it and never be soft hearted.