Category: Money tips Release Date: 2006-08-05
KDJ indicator is the investors in a technology most commonly used indicator, which react quickly, have a very clear trading signal, easy to learn, deeply loved most investors. However, it has a bad flaw: that is, KDJ indicators in the high and low passivation phenomenon. Due to restrictions on the fundamentals of computing, in the stock price up or down for some time, KDJ indicator of the stock prices will become very slow to reflect the stock continued to rise or decline again in many, KDJ indicators may be a little move about, and this will give us sale and purchase decision-making unrealistic reference indicator. Also makes KDJ indicator is only suitable for use in the stock box movement, once the stocks become the dark horse or a tape completely taking the bear, KDJ indicators will prompt a premature escape top shovel or a premature end.
This passivation behavior as indicators of a functioning KDJ bottleneck in a long time, many professionals have a variety of studies to solve KDJ passivation methods. Commonly used indicators of long-cycle KDJ to eliminate the passivation phenomena, such as using weeks instead of days KDJ indicator KDJ indicator, but this does not eliminate the phenomenon of passivation KDJ indicator, while others use the season KDJ on KDJ indicator or indicators, although the KDJ indicator can eliminate the passivation phenomena, however, KDJ month or quarter, KDJ (including weeks KDJ indicator) they are nothing but a function there is a false issue, there is a greater lag time, but also too long, analysis cycle is impaired KDJ indicator is good at short and medium term analysis of results.
In fact, no need to in order to eliminate the passivation phenomena KDJ, practical approach taken by the damage KDJ flexible and accurate indicators of the original features. In fact, if skillfully applied, KDJ inactivation may be the same as the miraculous. Like Sun Tzu said, to buy off the enemy's inner room as our anti-Inter. We can also put people's KDJ mistake inactivation of looking into the bottom of the tool.
Specific application techniques:
1, KDJ indicator K value, D value, J value is less than or equal to 20 at the same time, when there passivation phenomena, but only as a primary condition.
Second, stocks of KDJ indicators must continuously for more than 6 days or 6 days to reach primary conditions for this period, K value, D value, and J values is always less than 20.
3, the most recent period, the volume in a continuing state of atrophy.
Fourth, the last 3 trading days, J value is at least the same time, through the K value and D on the value of time.
5, J, on the value of the first to wear 20, the buying.
Application examples:
Head Pharmaceutical 600,671 days in May 18, 2000, J value of the first to wear 20 on the issue a buy signal. In the previous seven trading sessions, K value, D value, and J values is always less than 20. And the volume has been in a state of contraction. May 16 at the same time on the value of the Unit, J through K value and D value, and the success of a breakthrough in the 18th. Tianmu Pharmaceutical Co., issued a buy signal day's closing price of 11.72 yuan, after which rose sharply on the 13 trading day rose to 17.77 yuan, or more than 50%.
