Category: Money Tips Date: 2007-03-29
KDJ indicator is a technique often used by investors to target, and its advantage is that the future direction of price changes in more sensitive, especially in the weekly line-day chart, it is often able to give a more clear-cut into the playing time, in general, Gold Cross means to buy, the death cross means that short-selling. However, another aspect is concerned, KDJ indicator is sensitive to its deficiencies, therefore, proper use of KDJ indicator for judging the stock market is critical.
Moderator: Over the past week, the broad market correction at a high level shock, KDJ indicator continuously sent to buy, sell signal, so that some just to learn technical analysis for investors confused. We have invited senior members of Mr. Zhang Hongji Securities introduce KDJ indicator tips.
â–?Haidian District, Beijing shareholders Miss Liu: KDJ indicator why sometimes and sometimes not allowed to associate it?
Zhang Q: technical analysis of each method has its scope of application, such as the MACD indicator longer than mid-level or above market, and KDJ indicator is relatively sensitive, often in the big move because of the occasional sell signal issued prematurely thrown. Personally, I think, KDJ indicator is more suitable for use when the stock is in order, when a relatively high accuracy.
In addition, when KDJ indicator issued a buy or sell signals, we can also zoom method to confirm the validity of the signal. If K in Japan KDJ indicator charts to generate the low gold cross, it can be to zoom into the weekly chart to see if the weekly chart is also produced in the low gold cross, but just thought the signal reliability, I can safely go to operation.
â–?Beijing's Chaoyang District, Miss Song investors: a rising stock price unilateral, KDJ sell signal in the how to do?
Zhang Reporter: stock up on a unilateral or unilateral decline, due to KDJ indicator is very sensitive, so always give some ambiguous signals, these signals are easy to mislead the investors. An effective solution is to add in the K-line diagram of an up or down trend line, in the stock price did not break this trend line before, KDJ issued by any one of the reverse operation of the signal are ignored. Only when the stock price broke the trend line before the signal began to consider KDJ.
â–?Beijing Shijingshan District, shareholders Zhao: KDJ passivation occurs in the high or low when the how to do?
Zhang Q: When the stock have been rising continuously, KDJ indicator tend to occur. KDJ indicator is very sensitive, it gives the indicators often ahead of, so you can by observing the shape KDJ indicator to help find the right time to buy, and selling points, KDJ indicators in the low end of the formation of W, triple bottom, and head and shoulders pattern again when the end of purchase; In a strong market, KDJ indicators in the formation of high M head and head and shoulders top, the ship will enhance the reliability of the signal. In particular, investors should be noted that, like KDJ and RSI, after a concussion against the formation of a high pressure line accuracy.
