Summary of KDJ index (random index)
Investors in basic search often have such doubts in the process of using the indicators: sometimes the indicators are overbought seriously, but the prices continue to rise; sometimes the indicators are passivated in the oversold area for more than ten weeks, but the price has not stopped falling and stabilized. Here, the index is actually confused with the investor relationship. The index can not determine the market trend, but the price itself determines the operation status of the index. The price is the cause, the index is the result, the result can be deduced from the cause, and the cause can be traced back from the result. In fact, the most effective embodiment of market behavior is the form. Investors should first analyze the psychological changes of market participants from the technical form and obey the market. Before the rise and fall trend has not changed, do not try to use the index overbought, oversold or passivation to blindly determine that the market should rebound, the time to callback. Therefore, we should use KDJ index flexibly and give full play to its auxiliary reference function.
Was this article helpful?
0 out of 0 found this helpful