KDJ index is three curves, which are mainly considered from four aspects when applied:

The absolute number of 1 and KDJ-there are two water levels: low water level (below 25) and high water level (below 80).

At a high level, above 80 or near, there is a dead fork, and the stock price generally falls.

At the low water level, below 25, there is a golden cross, and the stock price generally rises.

2. The shapes of 2.KD curve-double top (bottom), head and shoulder top (bottom) and triple top (bottom), KDJ appears these shapes, which are consistent with the judgment of morphological theory.

3.KD indicator crossing-golden fork (bullish) dead fork (bearish)

4. Deviation from KD index

The share price of Jincha fell instead of rising. This is the deviation between the index and the stock price. Because of the deviation of the index, many people don't know how to use it or use it incorrectly.

First of all, the KDJ indicator should not be used on the daily line, but on the weekly line. Secondly, the KDJ index is completed by using Sunday resonance. Look at the weekly K-line of the Shanghai Composite Index in the same period, and you can clearly see this resonance.

KDJ indicator practical technology 1. KDJ indicator overbought and oversold 1. The KDJ indicator is overbought.

When the stock price fluctuates in the high-priced area, investors should pay attention to the risk of KDJ indicator line (especially curve D) entering the overbought area above 80. When the KDJ indicator line turns to the overbought area, investors should consider selling.

Figure 3-2 Daily K-line diagram of Dalian Electric Porcelain (002606)

As shown in Figure 3-2, on June 15 and 18, the curve D in the KDJ index of Dalian Electric Porcelain entered the overbought area above 80, and the stock shrank on that day. At this time, investors should be alert to the risk of stagflation and can lighten their positions one step ahead of schedule. The next day, the stock closed a cross line, indicating that the stock price was weak and there was a heavy selling pressure above. At this time, investors should focus on shorting. In the next two days, the KDJ indicator formed a dead fork, and the curve D fell below the 80 position, which further confirmed that the previous sale was correct.

2.KDJ indicator oversold

When the stock price fluctuates in the low-priced area, the KDJ indicator line (especially curve D) enters the oversold area below 20, so investors should pay more attention. When the KDJ indicator line turns in the oversold area, radical investors can open positions in time.

Figure 3-2 K-line chart of Dongfang Seiko (0026 1 1)

As shown in Figure 3-2, on June 19, 2065438, curve D in the KDJ indicator of Dongfang Seiko entered the oversold area below 20. At this time, the stock price and the broader market are in panic, and investors only need to pay close attention to the stock price dynamics.

On July 20 15 16, the curve d tilted upward to break through the 20 position and enter the normal range. At the same time, on the K-line chart, the stock has continuously pulled out three daily limit boards, at which time investors can buy in the short term.

Second, the deviation of KDJ index is 1. There is a bottom deviation between KDJ indicator and stock price.

When the stock price falls again, it hits a new low, but the KD value does not hit a new low when it falls again. This is called bottom deviation. This phenomenon implies that the stock price decline is coming to an end and is a buying signal.

Figure 3-3 K-line chart of Changqing Group (0026 16)

As shown in Figure 3-3, from the end of February 20 14 to June 20 15, the share price of Evergreen Group continued to fall, but the KDJ index became higher than the bottom. This bottom deviation phenomenon indicates that the stock price is about to bottom out and rebound, which is a bullish signal, and radical investors can buy in moderation in the process. 1mid-October 20 15 15 Changqing group's share price began to stabilize and rebound, with two consecutive low gold forks. Steady investors can consider buying.

Number 2.2. The KDJ indicator deviates from the stock price.

When the stock price rises again, it hits a new high, but the KD value does not hit a new high when it rises again. This is called top deviation. This phenomenon implies that the stock price rise is coming to an end, which is a selling signal.

Figure 3-4 K-line chart of Wanrun Technology (002654)

As shown in Figure 3-4, from the end of May to the beginning of June in 20 15, the share price of Wanrun Technology kept rising and hit record highs, but the KDJ index did not hit record highs at the same time, but gradually declined. This phenomenon is the top deviation, indicating that the market is about to turn from rising to falling, usually a sell signal. Investors can reduce their holdings in batches in this process to avoid risks. The appearance of high dead fork twice in a row proves the reliability of the selling signal.

Iii. KDJ indicators: golden fork and dead fork 1. KDJ indicator low gold fork

When the values of K and D are less than 30, and the curve K crosses the curve D from bottom to top, the KDJ indicator forms a low golden cross, indicating that the popularity will gather in the short term and the stock price may rise, which is a buying signal. In the low position, curve K and curve D may repeat the golden cross many times. The more times a gold fork is formed in a short period of time, the stronger the buying signal is.

Figure 3-5 K-line chart of Mengfali (0026 14)

As shown in Figure 3-5, on the day of 20 14 12 19, the Montpellier, which was in the process of decline consolidation, fell sharply, and the curve D in the KDJ index entered the oversold area below 20. On October 5th, 2065438+2005/kloc-0, 65438+, the curve K in Montpellier KDJ index crossed with the curve D from the top, forming a low golden cross. At this point, investors can buy moderately. After that, the stock entered a rebound market.

2.KDJ indicator high dead fork

When the values of K and D are both greater than 70, and the curve K crosses the curve D from top to bottom, the KDJ indicator will form a high dead fork, indicating that the popularity will be dispersed in the short term and the stock price may fall, which is a selling signal. At the high position, curve K and curve D may repeat the dead fork many times. The more times a dead fork is formed in a short period of time, the stronger the selling signal is.

Figure 3-6 hals (0026 15) daily K-line chart.

As shown in Figure 3-6, on May 26th, 2005+2065438, curve K in hals's KDJ index crossed curve D from top to bottom, forming a dead fork. The damn bifurcation appeared at a high level above 80, and then the stock price stagnated and fell, which was a relatively reliable selling signal.

Skillfully use KDJ indicators and grasp the trading points of KDJ indicators. Actual trading point chart: 1, bottom form: buy signal.

When the KDJ curve is at a low level below 50, if the trend of the KDJ curve shows a bottom reversal pattern such as W bottom or triple bottom bottom, it may indicate that the stock price will turn from weak to strong, and the stock price will rebound upward soon, so it can absorb a small amount of stocks on dips. If the stock price curve also presents the same shape, it is more recognizable, and its increase can be judged by W-bottom or triple bottom's shape theory.

2. Top form: sell signal.

When the KDJ curve is at a high level above 50, if the trend of the KDJ curve forms a top reversal pattern such as M-head or triple-top, it may indicate that the stock price will turn from strong to weak, and the stock price is about to plummet, so the stock should be sold in time. If the curve of stock price also presents the same shape, it can be confirmed that its decline can be judged by the shape theory of M head or triple top.

3. The indicators of K and D after the J-weekly turn deviate from the buying method.

As shown in the figure below, the value of J runs below 0, then the head turns upward, and the values of K and D deviate from the trend of weekly K-line. The first positive line after the deviation is the buy signal, and there will be a rising market in the later period. The rising market after deviation is relatively strong.

You must know the use of KDJ indicator: 1, and the values of k and d are always between 0 and 100. When d is greater than 80, the market is overbought. When d is less than 20, the market is oversold.

2. In the upward trend, the value of k is less than the value of d, and when the K line breaks through the D line, it is a buy signal. In the downtrend, the K value is greater than the D value, and when the K line falls below the D line, it is a selling signal.

3.KD indicator can not only reflect the overbought and oversold degree of the market, but also send out buying and selling signals through cross-breakthrough.

4.KD index is not suitable for stocks with small circulation and inactive trading, but KD index is extremely accurate for large-cap stocks and popular large-cap stocks.

5. When the stochastic indicator deviates from the stock price, it is generally a turning point signal.

6. The rising or falling speed of K value and D value is weakened and tends to be gentle, which is an early warning signal for short-term improvement.