The passivation problem of KDJ index (random index)

Fundamental analysis
KDJ index is a kind of indicator often used by technical analysts. The advantage of this indicator is that it is sensitive to reaction and can give very obvious signals of purchase and shipment, such as cross purchase of gold and Cross shipment of death. It is easy for users to master, as long as they look at the signal to purchase and ship. However, KDJ index has very obvious shortcomings, such as its response is too sensitive, so that users are either locked in too early to purchase, or ship too early to be short, which is the so-called low passivation and high passivation of KDJ index. Many users of KDJ indicators often complain about the cheating line of KDJ indicators. They often feel cheated when they use them. They think that KDJ indicators are deliberately cheated by dealers, but in fact, they fail to deal with the passivation problem.

KDJ index is a very good indicator, but it has a scope of use. Generally, the stock price or stock index moves in a box with a certain range. KDJ index will send out very accurate purchase signal and shipping signal. In this case, according to the low gold cross purchase, high death Cross shipment, the accuracy is very high, investors can win more than lose less.

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