What does stock KDJ index mean? How to identify the stock KDJ index?
This is an important indicator in technical analysis, and also one of the indicators widely used by investors and with good application effect. It is also an important basic knowledge of stock introduction. In the daily Kanpan, KDJ index can provide short-term trading point, but because this index is too short, it will cause the passivation of the index.
Identification method of KDJ index passivation
1. Magnifying method. Because KDJ index is very sensitive, it often gives some miscellaneous information, which is easy to mislead investors into thinking that there is a purchase signal or a shipping signal, so 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, we can enlarge it to the weekly chart. If the gold cross is also generated at the low position on the weekly chart, we will think that the signal is reliable and can be operated boldly.
2. Morphological method. In the use skills of KDJ index, due to its sensitivity, the indicators given by it are often ahead of time. Therefore, we can use the form of KDJ index to help find out the right buying point and selling point. KDJ index can be purchased when the low level forms w bottom, triple bottom and head shoulder bottom shape; in a strong market, when KDJ index forms m head and head shoulder top at high level, the signal reliability of shipment will be strengthened.
3. Wave counting method. The combination of KDJ index and numerical wave is a very effective method. On the K-line diagram, we can often clearly distinguish one wave, three wave and five wave in ascending form. On the K-line chart, stock prices end at the end of the bottom and begin to rise. Usually, 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 stock index moves to the third sub wave, we will pay more attention to the selling signal. When the stock index moves to the obvious fifth sub wave, if KDJ index gives the sell signal, we will resolutely ship.
4. Trend line method. When the stock index or stock price enters into a very strong or weak market, the stock index will form a unilateral upward trend and a unilateral downward trend; in the unilateral downward trend, the KDJ index will send out a buying signal or a low passivation for many times. If investors operate according to the buying signal, they will be caught up too early. Some of them will buy at a very low price, and the stock price will continue to fall, even if it is low.
If we want to solve this problem effectively, we can add a downward trend line to the K-line chart. Before the stock index and stock price break the down trend line, any buying signal sent by KDJ will not be considered. Only when the stock index and stock price break the down trend line, the buying signal of KDJ index will be considered.
The selection of buying points for the common golden cross stock selection method of weekly KDJ and daily KDJ can be as follows:
The first buying method: advance buying method. In practical operation, we often encounter such problems: as the change speed of daily KDJ is faster than that of weekly KDJ, when the weekly KDJ is golden cross, the daily KDJ has been ahead of schedule for several days, the stock price has also risen for a period, and the purchase cost has risen. Aggressive investors can buy ahead of time in order to reduce costs.
The conditions to be satisfied in advance buying method are as follows:
① Receive the weekly Yang line, and the hook head of the K and j lines of the weekly line will need a golden fork (golden fork).
② The daily line KDJ will develop golden fork in this week, and the daily trading volume of golden cross is positive (if the daily KDJ golden fork is on the same day, the trading volume on that day is greater than the 5-day average volume is better).
The second buying method: Weekly KDJ just golden fork, daily line KDJ has golden fork buying method.
The third way to buy: Weekly K, D two line "will die" buying method.
The conditions for this method are as follows:
① After the week KDJ gold cross, the stock price fell back to close the weekly negative line, and then went up again in large volume.
② The K and D lines of the weekly line are about to cross, but there is no dead cross. The K line opens its mouth again and goes up.
③ KDJ gold fork. Using this method to buy stocks, you can capture a rapid and strong rise in the market.
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