Morphological analysis of triple top and triple bottom of KDJ technical index
1. Shape analysis and application strategy of triple top
The triple top of KDJ index refers to the top shape formed by the three successive rises of K line in the top area of KDJ index. Once the triple top is formed, it means that the stock is about to fall.
(1) The longer the period between the high points of the triple top is, the more likely it will fall in the later period; if the last peak is shorter than the previous one, the more likely it will fall; if the three peaks are above the 80 line, the greater the falling intensity.
(2) Use a straight line to connect the two low points of the correction between the three vertices. When the K curve falls below this straight line, investors should sell their stocks.
The curve K in KDJ index has three consecutive peaks, and the last one is shorter, and the stock price fluctuates accordingly. When k line falls below the straight line formed by two low points between the three peaks, that is, the red arrow, the stock price falls sharply, and investors can sell their stocks here. 2. Form analysis and use strategy of triple bottom
The triple bottom of KDJ index means that the K line of KDJ index runs at the bottom, and the situation of three consecutive falls is pulled up. Once the triple bottom appears, it means that the stock is about to rise.
(1) The longer the interval between the three low points of the triple bottom, the greater the rising chance; the higher the last low point is than the previous low point, the greater the rising strength; the three low points are all below the 20 line, the greater the rising strength.
(2) Connect the two highs formed by the three falls into a straight line. When the K line breaks through these two highs, investors can buy.
The K line in KDJ index forms a triple bottom figure. The last low point is higher than the previous low point. The stock price changes with the change of K line. When k line breaks through the straight line formed by two high points, namely the red arrow line, the stock price will pull up, which is a signal for investors to buy.