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Data:2009-12-12 2:34
Stochastic KDJ (Stochastics)
KDJ indicator is designed to cater for short-term speculators. In order to overcome the closing price as the benchmark moving average (MA) as an entry point to the shortcomings of the sale, KDJ, taking into account the highest price over the past few days, low and closing price fluctuations, and thus more accurately reflect price trends more and ultra - buy oversold situation.
KDJ was originally in pursuit of short-term safety of the operation was designed. Of the original parameter setting on the 5th, early in the futures market, a significant effect. Then applied to the stock market, the traditional (default default) set the parameters for the 9 (9,3,3), using the results so far are quite good. KDJ had become a market analysis of one of the key indicators used.
1. KDJ oscillation in the cabinet market is in operation issued by the buying or selling signal, very reliable. As for price volatility in the short term or instantaneous volatility is too large, indicators will tend to saturation passivation. Therefore, KDJ for the stock market index, as well as the broader market analysis of the effect is good.
2. KDJ indicator is usually fluctuates between 0 and 100. 0 for the bottom 100 of the top. Index map where there are three lines: 20, 50,80.
When D> 80, there are saturated passivation tendency as overbought and should choose the right to sell. When D <20, there is also passive trend, as oversold and should choose the right buy.
3. When the K break up in the 20 or so D Cross (Jin Cha), it said that the trend of rising buy signal; when the K in the 80 or so down the cross-perforation D (Sicha), the trend of decline as a sell signal, said.
4. K value of the formation of a high-end of the end of the previous one, and below 50 twice in a row with the D cross-up, the gains will be larger. K value of the formation of a lower than the previous one, and in more than 50 twice in a row from the top-down cross with the D, the decline will be larger.
5. When the price movements, a peak peak height than the previous one, while the KD curve a peak lower than the previous peak, indicating departure from the top, short-term price trend peaked and should choose the right to sell. When the price trend at the end of a low-end of the previous one, while the KD curve of a high-end of the previous one at the end of that departure from the end of the short-term prices will hit the bottom, shall select the machine to buy.
6. In the narrow range of the stock market consolidation, as well as abnormal, we should abandon the use of KDJ indicator to operate. When the K, D in 50 cross, usually regarded as invalid and ignore the.
7. J> 100, or J <0, we should note that the price increase will be reversed at any time, but when reversed, it is difficult to determine.
Above, the majority of technical indicators tutorials are brief.
Tip:
1. For the short-term investors, KDJ indicator parameter settings changed to 6 (6, 3,3) seems better, issued by the buying or selling signal, there leading by half a beat effect.
2. KDJ indicator issued a buy, sell signals, they shall refer to B BI, W% R, RSI indicators, calibration verification, before the final decision to make the sale. When KDJ Jin Cha, BBI flat or upward; W% R from the bottom up break 50; RSI> 50 before buying. KDJ when Sicha, BBI flat or down; W% R pierced by a top-down 50; RS I <50 was sold.
3. For the medium to long term investors, the day K-line KDJ occurred Jin Cha weeks later K-line KDJ also occurred in Jin Cha, afternoon there will probably be a wave of big move. For example: 600.99 thousand four create electronic 2006/04/07 ~ 2006/05/30 pulled from 9.61 yuan to 17.08 yuan, a period of six weeks, an increase of up to 75.9% of .000680 shares of Mountain pushed 2006/03/03 ~ 2006/05/10 pulled up to 5.40 from 2.80 yuan yuan, a period of 8 weeks, an increase of up to 84.8%. However, Zhou Jin Cha took place after the K-line is not there must be a big move! This is because the main Kongpan pulled up by the willingness of decision makers.
4. Simply a technical indicators to make trading decisions on the next single, is unwise, at least it is not enough caution.
5. In principle, application of key indicators which the stock market, delisting is also applied when the same indicator.
