Medium term application of KDJ index (random index)
As the stock proverb goes, "buy at the bottom, do not move like a mountain". In the right way, to undertake the panic market in the low position of the market is the winning way of medium and long-term speculation and investment. Using the weekly KDJ copy bottom, in the bottom area of the fork is a very high winning way. Since the 9-week KDJ index reflects the mid-term trend of the stock price, the midline reference value of its trading signal is higher.
However, for the stocks that use the 9-week KDJ bottom copy, the following conditions should be met:
① Individual stocks are active and fluctuate greatly.
② There was no obvious escape behavior at the top.
③ The plates should be moderate and the circulation should be less than 90 million shares (preferably less than 65 million shares).
④ Since the top of the cumulative decline or medium-term unilateral sharp drop in a larger range.
The specific signal characteristics are as follows: 1.9 weeks of KDJ appear gold cross below 20, which is often the best cut in time (as shown in the figure B1). In general, short-term at least have a certain strength of the rebound market.
2. When KDJ is about 20 (slightly higher than 20) or around 50, it is usually the bottom of medium and short term. Only when KDJ has a more obvious bottom deviation signal (the stock price is at a new low, and KD index refuses to make a new low), and when the low double cross or multiple cross *, it can be considered that the medium-term bottom (or secondary intermediate bottom) is coming (as shown in point B2 in the figure).
3. The j-line index is negative, which appears more than 2 weeks (usually 3-5 weeks). Bottom passivation, often cause low rebound. Investors can see this as the bottom of the medium and short term, but temporarily take part in the attitude of fast in and fast out and profit making (as shown in point B3 in the figure). Only when the RSI of 9 weeks, RSI of 14 weeks is lower than 20, or the low position of KDJ deviates from the bottom (about 20) and KDJ crosses more than twice, it can be transferred to the middle line after bottom reading.
Through the above analysis, it is completely possible for us to capture the bottom of the middle line and the bottom of the long line through the KDJ of 9 weeks for the stocks with potential fundamentals and strong capital. However, investors should have great patience and firm faith in the middle line investment, and intervene in the bottom reading at the most ugly moment of the K-line chart. Only in this way can we achieve a high success rate and win a lot of midline returns.
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