How to see KDJ line chart of stock market?


KDJ index, also known as random index, is a more conventional and widely used technical index. It was first used in futures market analysis, and then applied to stock market analysis. In the stock market, what should we think of KDJ line chart?
The KDJ line diagram is composed of three curves with different colors. The white line represents the K line, the yellow line represents the D line, and the purple line represents the j line. As the confirmation line, the value of the line j changes most rapidly. As the confirmation line, it mainly determines the sales signal sent by the K line and the D line.
The activity range of KDJ is 100. According to the different value range of KDJ, it can be divided into oversold area, oversold area and wandering area.
When the value of K, D and j is below 20, it is oversold and it is a buying signal; when the value of K, D and j is above 80, it is an overbought area, which is a sell signal; when the value of K, D and j is between 20 and 80, it is a wandering zone, and investors mainly wait and see. When the value of K, D and j is near 50, it indicates that the strength of both sides is in balance. When the value of K, D and j is greater than 50, it indicates that in the long short competition, many parties are dominant and the stock market has a greater chance of rising in the later period. On the contrary, when the value of K, D and j lines is less than 50, it shows that the short side is dominant in the long short competition and the stock market has a greater chance of falling in the later period.
K line upward breakthrough through line D to form a golden cross, with the volume of trading volume, is a buy signal, on the contrary, K line downward breakthrough through D line to form a dead cross, volume shrinkage is a sell signal.
When the D line in KDJ index deviates from the trend graph of the stock price at the bottom, it indicates that in the long short competition, many parties start to make efforts, and the stock price will rebound at the bottom, which is a buy signal; conversely, when the top deviation from the stock price trend is a sell signal.
The above is the analysis of KDJ line diagram may appear, hope to help investors.

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