Category: Money Tips Date: 2006-09-26
Quotes KDJ indicator is judged that a technique often used indicator, 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 more specific into the playing time, in general, gold cross means to buy, the death cross means that short-selling.
But any indicators are not universal. From another perspective, KDJ indicator is that it is sensitive enough place. Gold Cross of the signal is often possible to enable investors to purchase early to be stuck, the death signal to enable investors to cross-ship was rolling too early to empty. These two phenomena is what we often say KDJ indicator of low and high passivation passivation. Understanding of the phenomenon of passivation KDJ indicator for the volatile futures market is critical.
To correctly use the KDJ indicators, need to meet the conditions are: view price in a certain range of the box among the movement, in this case, in accordance with low cross-buying of gold, high mortality cross-sell, accuracy is relatively higher.
When passivation occurs when the KDJ indicator, you can use the following methods to identify:
1, amplification method.
Because KDJ indicator is very sensitive, so always give some miscellaneous letters, these signals are likely to mislead investors that the purchase signals or ship produce signals that operate the mistakes. If we enlarge one to confirm the reliability of the signal, there will be good results. 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, will think that this signal reliability, I can safely go to operation. If the weekly chart shows the way in the fall, then the daily chart on the reliability of the gold cross is not strong, it may be the main line of deception tactics can be used at this time wait and see approach.
2, form France.
KDJ indicator because of the sensitive, often ahead of its targets are given, 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 floor and head and shoulders pattern again when purchasing ; 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, it should be noted that the same KDJ with the RSI over the anti-shock pressure lines formed after a high accuracy.
3, a few waves method.
KDJ indicator combination of several waves, is a very effective method. In the K-line chart, you can always clearly distinguished form of a rising wave, three waves, five waves. In the K-line map, view price set at the end of the end began to rise, often on the rise when the first sub-waves, KDJ indicator that cross-shipped release of death signals, this time, you can consider this a small sell signal, because it is likely to be a wrong signal to the signal line or a fool. Current prices run to the third sub-waves, the greater emphasis on the short signal, current price movements to clear the fifth sub-wave, the time to sell, such as KDJ indicators give a signal, determined to shipping. KDJ indicator at this time will be given the signal is usually very accurate signal, current rise in prices began to fall, when the just-concluded in the fall of the first sub-waves, less consider buying KDJ indicator signal, the third son of current prices fell wave or the fifth sub-wave only when considering buying KDJ indicator signal, in particular, fell five sub-waves after the buy signals given by KDJ indicator more accurate.
4, the trend-line method.
In the period of market prices into a strong or very weak market, period of the formation of a unilateral increase in price will fall trends and unilateral movements; in a unilateral down trend, we should effectively solve the KDJ passivation problem, you can add a K-line diagram the downward trend line, in the period of price did not break the downtrend line before, KDJ issued by any one buy signal, will not consider, only the current price trend line break down after they start thinking about buying KDJ indicator signal; the unilateral increase in trend, the market trends strong, a further period of high prices often sell signal, click here to signal the operator will lose a large segment Quotes, you can also add a line in the Japanese K upward trend line, in the period to break the upward trend in prices is not line before the given index does not consider KDJ sell signal to break up once the current price trend line, KDJ given sell signals, will be resolutely implemented, and no leniency whatsoever. KDJ indicator failures often occur in a very strong market or a very weak market, unilateral increase in price and unilateral move down into. KDJ inevitable at this time high and low passivation passivation the situation at this time also, according to purchase gold cross and death cross-ship, will take place Quotes just starting, KDJ indicator has been issued a sell signal at a high level, if the operation according to the signal , will lose a primary segment l Quotes; Quotes just dropped, KDJ issued a gold cross in the low, if the purchase would be stuck, and the price of the loss will be very large, because the indicators can be in the low KDJ passivation of the re-passivation, Issue prices fell more than, thus investors would be erroneous.
