KDJ indicator application of real-world experience financial management tips tips Bar

Category: Money Tips Date: 2006-08-12

Commonly used in the traditional brokerage software, there are dozens of technical indicators, by allowing new investors to investors at a loss, with the popularity of computers, especially in the stock of professional software innovation, a number of shares the software with a self-compiled index function has kept Technology Indicators lovers bored with the courage to adapt innovations, online is more popular indicators are tens of thousands, but also to dazzle the old shareholders, in fact original aim is no more than the amount of average price of different combinations of expression variation, the real value of new ideas can be described as rare, anti-as traditional indicators used in several classic and practical, of course, to truly grasp its essence Magical need to trip from the city. Three Kingdoms Zhao's that big guns can be vertical and horizontal bar world, it relies not on the gun itself, but that shot gun users!

Any of the technical indicators have their own flaws and limitations, such as the MACD trend of shocks blind, KDJ on the rolling air passivation blind sided style, the pagoda on the top and bottom line of the blind spot, moving average support for the validity of the pressure adjustment in place The blind, turnover on the Xihuo to identify the blind spots, and so can not be shipped. Other indicators that we can to make up for its shortcomings with each other, for example with KDJ, CDP to cover the auxiliary MACD system; CCI, DMI to compensate for KDJ systems; KDJ, RSI to cover the average for the system; KDJ, RSI departure to cover the pagoda-line system; stock price high and low and the K-line to compensate for average turnover rate of the blind spot, etc., etc., of course, sometimes an indicator can not fully compensate for deficiencies in another indicator needs to look at Critical Study of the problem.

Here the writer's common KDJ indicator, combined with some of my experience, my personal understanding and humble view for reference purposes only and attract valuable comments.

1, concepts Description:

KDJ full name of the random target (Stochastics), by the United States George * Ryan (George Lane) Dr. Chong, its comprehensive concept of momentum, strong and weak indicators and the advantages of moving average is also commonly used in Europe and the United States securities and futures market, a technical analysis of工具.

Stochastic design ideas and formulas are derived from William (W% R) theory, but more than the W% R indicator value, W% R refers to opposition to the US-mo, then the shadowy Sapporo stretch blind magnetic unloading a good barium �?Oyster Commission �?coarse stifling intestinal worm �?�?prostitute �?Vice-Society-Ci Zheng narrow boats are depleted �?conceited thoughts mao �? knocking on oyster-tiao lotus Novo na unload both fine detail �?David Huang �?removal ǘ �? -100 overbought oversold between indicators, from the K, D, J composed of three curves, in the design combines the momentum indicator moving average line strength indices and some of the advantages, in the calculation of the level of the process of major study the relationship between price and closing price, that is by calculating the date on or the highest price the last few days, low and closing price for the true volatility of price fluctuations, fully taking into account price fluctuations of random amplitude and short-term fluctuations in the estimates to measure the short-term moving average city features more accurately than the efficient market the short-term overbought oversold, the RSI off than those sensitive to the relative strength index, in short KDJ is the concept of a random fluctuation, reflecting the strength of price movements and trends in band, for sure in the short-term trend of the stock market is very sensitive.

Second, the calculation formula:

To 9 cycles KDJ, for example, first calculate the last nine days of "immature random value" that RSV values, RSV formula is as follows:

RSVt = (Ct-L9) / (H9-L9) * 100

Where: Ct ------- closing price of the day

L9 ------- 9 days, the lowest

H9 ------- 9 days, the highest price

As can be seen from the formula, RSV indicators and% R is very similar to the calculation. In fact, the same cycle of RSV value and% R value is equal to 100, and therefore the value is also between RSV and 100. RSV derived value, can find the K value and D value: K value of RSV value on the 3rd line of a smooth moving average, while the D value of K value on the 3rd line of a smooth moving average three times the value of minus twice the D values of K J-derived line, its calculation formula is:

Kt = RSVt / 3 +2 * Kt-1 / 3

Dt = Kt / 3 +2 * Dt-1 / 3

Jt = 3 * Dt-2 * Kt

KD Line of RSV, with the nine Japan-China high-low price, to changes in closing price. If there is no KD values, you can use the day of the RSV value or 50 instead of the previous day's value of KD. After smoothing operation, the starting date of the KD values of different base period will be consistent, there will be no difference, K value and K value is always between 0 to 100. According to the fast and slow moving average cross-theory, K-line K line up to buy the signal break, K-line below the D line sell signal that Quotes is a clear gains will lead to K-line (rapid mean ) and the D line (slow average) to the rise, if the gains began to slow, it will gradually be reflected in K value and D value, and the K-line below the D-line, this time set in the decline in short-term adjustment, which is a simple application of common principles.

Third, the application must then:

KDJ more sensitive indicators of response to random target fast, is a progressive short-and long-term trend analysis of judgments of the better bands of technical indicators. Big money big-band generally people who are generally low during the month KDJ values gradually approach to absorb; the main emphasis on the operation of weeks KDJ peacetime location of the center line of the cycle of high and low points for the band analyzing the results, it often happens that unilateral type of frequently caused by Japan KDJ passivation phenomena; Japan KDJ changes in the direction of the stock price reaction is extremely sensitive, is an important way out of the daily trading; for a small band of short-term passenger for 30 minutes and 60 minutes KDJ is also important to a reference indicator; trading scheme has been designated for immediate orders of the investors, 5 minutes and 15 minutes KDJ can provide the best access time.

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KDJ commonly used default parameter is 9, my personal experience, the short-term parameters can be changed to 5, not only a more agile response to quickly and accurately, but also can reduce the lower passivation phenomenon, commonly used KDJ parameters 5,9 , 19,36,45,73 and so on. Actual combat in the different cycles should also be integrated to analyze trends in the short and long will be at a glance, as there are different cycles resonance phenomenon, indicating the trend of increased reliability. KDJ indicator of actual combat to be judged mainly the following four points:

1) K-line is fast to confirm line - value of 90 or more as overbought, oversold following values in the 10;

D line is a slow trunk - value in 80 or more as overbought, oversold following values in the 20;

J line is sensitive to the direction of line, when the J value is greater than 100, especially in 5 consecutive days or more, shares at least the formation of short-term head, whereas J is less than 0, in particular, for several days or more, shares at least the formation of short-term bottom .

2) When the K value is greater than the D value by a smaller gradually, in the graph displayed on the bottom of the K-line from the wear D line, shows the current trend is upward, so the graphics on the K-line upward break D line, namely, to buy signal.
Actual time when the K, D line 20 the following cross-up, this time the short-term buy signal is more accurate; if K values below 50, from bottom to top to wear on a series of two D values, the formation of the right than the left at the end of the end of the high The "W at the end of" form when the stock market outlook may be considerable gains.

3) When the K value is less than the D value by a larger gradually, in the graphical display K-line from the top to wear under the D line, shows the current trend is downward, so the graphics on the K-line break down the D line, namely, sell signal.
Actual time when the K, D-line for more than 80 cross-down, this time the short-term sell signal is more accurate; if the K value above 50 by the top-down beneath two successive values of D form a left-right-first than in the first low "M head" shape, the afternoon may be a considerable decline in stock prices.

4) deviate by KDJ and stock price movements to determine top and bottom stock price is also quite practical method:
A) shares a record high, while the KD value is not high, in order to depart from the top should be sold;
B) stock prices to new lows, while the KD value is not new lows for the end of departure should be bought;
C) price is not high, while the KD value is high, in order to depart from the top should be sold;
D) did not record low stock prices, while the KD value of new lows for the end of departure should be bought;

Note that KDJ departure from the top and bottom to determine the method, only when the previous wave of high and low points, compared with KD values can not jump in the past compared.

4, application experience:

1) In practice, some do offer quick and tough short-term passenger and commonly used indicators of minutes to determine the timing afternoon trading decisions, commonly used in the T +0 time 15 minutes and 30 minutes KDJ indicator, in the T +0 time more in 30 minutes and 60 minutes KDJ to guide and out, several empirical laws summarized as follows:

A) If the 30-minute KDJ 20 following a long consolidation time, 60 minutes KDJ is true, then the K value of 30 minutes once wore D value and over 20 may lead to a sustained in the rally of more than 2 days; if on-line KDJ indicators are also low occurrence Jin Cha, it may be an intermediate Quotes. However, should pay attention to the value of Jin Cha K value and D value is greater than D, after only a K value of 20% or more, this cross to be effective;

, is likely to continue upward;

C) If the 30-minute and 60 minutes KDJ 80 over a longer time after the K value of consolidation at the same time down Sicha D value, it indicates that at least two days to begin the decline adjustment Quotes;

D) If the 30-minute U-turn upward KDJ fell below 20, and 60 minutes KDJ is still above 50, they have to observe the K value of 60 minutes whether they will effectively through the D value (K value is greater than the D value of 20%), if valid indicators of will begin a new round of upside; if invalid indicates that only a drop in the process of rebound after rebound still continued to fall;

E) If the 30 minutes before the KDJ 50 arrested, while 60 minutes is just up cross-KDJ, indicating Quotes likely to continue for another upward, currently only belongs to correction;

F) 30 minutes or 60 minutes KDJ divergence phenomenon, as judged based on the broad market top and bottom, see line of departure from the previous day's exposition;

G) in the super market, 30 minutes KDJ can reach 90 or more, and repeated at a high level of invalid cross, this time the focus to see 60 minutes of KDJ, when the 60 minutes down the cross-KDJ appears, it may lead to short-term deep correction ;

H) in the fall during the 30-minute KDJ can be close to 0 value, while the general trend of decline is still more than at this time but should have 60 minutes KDJ, when the 60 minutes to effect cross-KDJ up, it will lead to a very strong rebound.

2) When the Quotes are in a very strong very weak single market, Japan KDJ appeared frequently passivation, MACD, etc. should be used instead of long targets; when stock prices volatile short-term, Japan KDJ response lag, it should use CCI, ROC and other indicators ; or use SLOWKD slow indicators;

3) KDJ line parameters in the general use weeks 5 weeks KDJ index bottomed out and the peak effect has obvious tips, whereby band operation can save a lot of hard work and strive to maximize profits, must prompt the general Zhou J values in the oversold zone V-shaped single bottom up, indicating only a rally to form a double bottom only as a reliable medium Quotes; but J values in the overbought area dropped a single roof will also have the possibility, so they should be vigilant at this time should be in combination with other indicators of a comprehensive judgments; when the stock market in a bull market, J value in intraday overbought area for some time, the stock will still be increased substantially.

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