How to use KDJ for short-term trading, TA Challenge🤔?
What is KDJ & how to use it?
First, go visit @Meta Moo post to find out more (I'm also new to this):
Meta Moo :KDJ – a powerful indicator for short-term trading
First, go visit @Meta Moo post to find out more (I'm also new to this):
Meta Moo :KDJ – a powerful indicator for short-term trading
All in a summary about KDJ :
Overbought & Oversold?
= here (quite similar to RSI )
= here (quite similar to RSI )
Firstly, select $SPDR S&P 500 ETF (SPY.US)$ & remove all ur junk indicators (so that u won't get urself confused with so many indicators) & then select KDJ as shown in the below picture 😉 :
P1:
As seen in P1, the 3 lines intercepted & the KDJ is about 20 = oversold & signal for a possible short-term uptrend/bullish.
As seen in the picture 📸, the stock price followed by an increased in price later on .
As seen in the picture 📸, the stock price followed by an increased in price later on .
P2:
In P2, the 3 lines intercepted & the KDJ is about 90 = overbought & signal for a possible short-term downtrend/bearish.
As seen in P2, the price decreased on later days .
As seen in P2, the price decreased on later days .
Using KDJ with MACD:
P3:
P3:
As seen in P3, MACD orange line is below the blue line = downtrend.
KDJ = 30+ & 3 lines intersected = bearish.
(Not under 20... so = may continue to downtrend)
Conclusion = Downtrend for a short-term as shown in P3.
Vi-versa .
KDJ = 30+ & 3 lines intersected = bearish.
(Not under 20... so = may continue to downtrend)
Conclusion = Downtrend for a short-term as shown in P3.
Vi-versa .
Using KDJ with RSI:
P4:
P4:
Shown in P4, RSI = 70+ = overbought.
KDJ = 90+ & 3 lines intersected = overbought + a possible signal of bearish 🐻.
Conclusion = short-term downtrend as shown in P4 on later days.
Vi-versa .
KDJ = 90+ & 3 lines intersected = overbought + a possible signal of bearish 🐻.
Conclusion = short-term downtrend as shown in P4 on later days.
Vi-versa .
Note: All indicators only act 🎬 as a guide for ur buy & sell decision = NOT 100% accurate.
KDJ is a short-term indicator .
KDJ is a short-term indicator .
DYODD before investing
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Meta Moo : Great explanation. Using 3-4 technical indicators to analyze is safer.
Milk The Cow OP Meta Moo : Yup , majority win usually.
Milk The Cow OP Meta Moo :
Basjan : Thank you MTC !
Milk The Cow OP Basjan : np