Short term 2-5 trading days, KDJ index parameters set how good?
First of all, KDJ index is mainly through the study of the relationship between the highest price, the lowest price and the closing price in the target cycle, and integrates the advantages of market momentum direction, strength index and moving average. It is one of the reference indexes for short-term and medium-term trading of commonly used indicators in financial markets. The default parameters of KDJ index of stock trading software are 9, 3 and 3 days.
In the KDJ technical index parameters, the smaller the parameter index adjustment, the greater the fluctuation of index graph. Generally, when investors adjust the parameters of KDJ technical indicators, the main adjustment is the days of the first index parameter (9 days in the default reference), which can be referred to by different technical form changes formed in different trading cycles.
Usually in the short-term reference process, the investment will adjust the technical index parameters to be more inspirational, but not too sensitive. If the index reference is too sensitive, more invalid technical form reference signals will appear. More experienced investors in the market will adjust the KDJ parameters to 6, 3 and 3 days when using the short-term trading reference of KDJ index. As a result, the volatility of KDJ technical index form is large, and the volatility of index value is also large, which makes the KDJ technical index form more active in the short term, and the reference will be improved accordingly.
Generally speaking, the setting of KDJ index parameters is determined by investors' different trading strategies or preferences. There is no absolute good or bad, and investors need to practice trading to gradually improve and change. However, investors know that any technical indicators and technical forms are misleading, and it is necessary to refer to the market environment and individual stocks when trading.