KDJ metrics (more detailed description)
Because the KDJ line is essentially a concept of random fluctuation, it is more accurate to grasp the short-and medium-term market trend. However, in the long-term K chart, KDJ also has a certain significance in predicting the medium-and long-term trend of stock prices, such as the KDJ index in the weekly chart plays a better guiding role in the midline operation.
In the KDJ index, the range of K value and D value is 0-100, while the value range of J value can be more than 100 and less than 0, but in the analysis software, the range of KDJ is 0-100. Generally speaking, in terms of sensitivity, J value is the strongest, K value is the second, D value is the slowest, and as far as safety is concerned, J value is the worst, K value is the second, and D value is the most stable.
Shortcomings of KDJ metrics:
The main contents are as follows: 1. Blind area of unilateral passivation. When the stock unilateral trend rises, the KDJ index will continue to be in the overbought area, which may cause many investors to sell ahead of time, or a small pullback in the stock price may cause the KDJ index to fall rapidly and sharply, causing panic to investors; on the contrary, in the trend unilateral decline, the KDJ index will continue to send wrong signals, which will cause great difficulties to investors in actual operation.
2. Effective golden fork and invalid golden fork of KDJ index. Except in the unilateral trend market, the stock price does not rise but falls after buying stocks according to the KDJ golden fork in some concussive market, which is the ineffective golden fork.
How to deal with the defects of KDJ indicators?
1. Find auxiliary indicators: other indicators can make up for each other's shortcomings, such as matching moving averages, trend indicators and other auxiliary judgment.
2. Adjust the parameters: adjust the parameters of the index for different stocks according to different market conditions.
3. Multi-cycle cooperation: we can combine the KDJ technical index of weekly K line and daily K line to judge.
KDJ buying pattern: line D enters the oversold range.
Morphological introduction:
In the three curves of the KDJ index, when the D line continues to fall, falling below 20:00, it has entered the oversold range. This pattern shows that after a continuous decline, the short force in the market has been extremely strong, but its room to continue to strengthen in the future has been very limited. In the future, with the shrinking of the air force and the enhancement of various forces, the stock price will bottom out and rebound.
First buy point: d line falls below 20
When the D line in the KDJ index falls below 20:00, it means that the market has entered a state of oversold, and the stock price may bottom out and rebound in the future, at this time investors can first establish some positions.
The second buying point: the D line breaks through 20.
When the D line returns to above 20 again after running below 20 for a period of time, it shows that the extremely strong short side in the market is over, and the stock price has seen signs of bottoming out. At this time, investors can boldly buy stocks and complete Jiancang.
Stop position: d line falls below 20 again
If the D line does not continue to rise after breaking through 20, but falls again after a small rise, falling below 20, it shows that the short side in the market is still strong, and many parties are unable to continue to lengthen the stock price, and investors should sell their shares to stop loss.
Main points of operation:
1. The longer the D-line lasts in the oversold range, the more serious the depletion of short power will be, and the stock price will have more room to rise in the future.
2. If the D-line breaks through 20 and the trading volume is magnified synchronously, it means that the multi-party power begins to strengthen, and the bullish signal of this form will be more reliable.
3. The oversold range of different stocks may vary. For some large-cap stocks with relatively small price fluctuations, if their D-line falls below 30, they may enter the oversold range, while for some small-cap stocks with large stock price fluctuations, their D-line may fall below 15 before they enter the oversold range. Investors can judge the specific oversold range according to the past trend of the stock.
KDJ buying pattern: J line enters the oversold range.
Morphological introduction:
Among the three curves of KDJ index, J line is the one that fluctuates most frequently. When the curve falls below zero, the market has entered the oversold range. This pattern shows that with the rapid decline of stock prices in a short period of time, the short-side force in the market has been extremely strong. Once the power of the air side rises and falls, and the power of many parties increases, the stock price will bottom out and rebound.
The first buying point: J line falls below 0
When the J-line falls below 0, it means that the short-side kinetic energy in the market has been released in a short period of time, and it is estimated that there will be a bottoming trend in the future with the strengthening of various forces. At this time, investors can buy a small amount of shares and set up some positions.
The second buying point: J line breaks through 0 value.
If the J line runs below the 0 value for a period of time and then breaks through the 0 value, it means that the stock price has begun to rise, and investors can actively buy stocks and complete Jiancang.
Stop position: J line falls below 0 again
If the J-line does not continue to rise after breaking through the zero value, it reaches its peak and falls below the zero value again, which means that the short side is still strong and many parties are unable to pull up the stock price. At this time, investors should sell their stocks to stop losses.
Main points of operation:
1. Compared with the oversold signal of D line, the oversold signal of J line is more inclined to reflect the rapid rise and fall of stock price in the short term. In the continuous rise or fall of the market, the J-line may be passivated.
2. According to the calculation method of KDJ index, the value of J-line may be negative, but the value of negative J-line is displayed in most stock speculation software.
3. After the emergence of the first buying point in this form, the stock price may habitually fall for some time. In order to avoid losses as far as possible, investors can not operate at this time, and then concentrate on buying stocks when the second buying point appears.
KDJ buying form: K line and D line low gold fork
Morphological introduction:
The K line and D line in the KDJ index can represent the rising and falling momentum of the stock price. Among them, K line represents the momentum of stock price rise and fall in the short term, and D line represents the momentum of stock price rise and fall in the long term. When the K line breaks through the D line upward, they form the golden fork shape of the KDJ index. This pattern shows that the upward momentum of the stock price has an increasing trend in the short term, which is a bullish buy signal.
If this form appears in the low level below 50, it means that the stock price has just entered the rising market at this time, and there is still a lot of room for rise in the future, and the bullish signal of this form will be stronger.
Buy some: when the golden fork is finished
When the low golden fork is completed, the stock price has a continuous upward trend, at this time investors can actively buy stocks, holding shares waiting to rise.
Stop position: K line and D line dead cross
If the K line does not continue to rise after breaking through the D line, but reaches its peak and falls below the D line, it means that the upward momentum of the stock price is still weak, which is not enough to continue to pull up the stock price. At this time, investors should sell the stocks they have just bought and stop their losses as soon as possible.
Main points of operation:
1. The lower the position of the KDJ index when the golden fork appears, the more room for the stock price to rise in the future. If the D line is in the oversold range when the golden fork appears, and as the golden fork completes the D line also breaks through the oversold range, then the bullish signal of this form will be stronger.
2. According to the calculation principle of KDJ index, when the K line breaks through the D line, the J line must break through the D line at the same time, forming the shape of three curves with golden forks at the same time.
3. If the trading volume is also gradually enlarged at the same time of the golden fork of K line and D line, the signal of continuous strengthening of multi-party power is verified, and the bullish signal of this form will be stronger.
KDJ buying pattern: K line deviates from stock price bottom
Morphological introduction:
While the stock price continues to fall and hit a new low, if the K line in the KDJ index is not innovative low, but there is a rising trend of a bottom higher than a bottom, it means that although the stock price is still falling, the momentum of sellers in the market has gradually weakened, and the stock price has bottomed out and rebounded in the future, which is a bullish buy signal.
The first buying point: the K-line deviates from the stock price twice in a row.
When the K-line and the stock price deviate from the bottom again in a row, the seller's strength is likely to have become very weak, and the stock price has bottomed out at this time. Investors can buy a small amount of stocks first and establish some positions.
The second buying point: the stock price breaks through the previous high
After the completion of the continuous bottom deviation, if the stock price can break through the high point of the previous rebound, it means that many forces have begun to pull up the stock price. At this time, the stock price is about to enter a rising market, and investors can actively buy stocks and complete Jiancang.
Stop-loss position: share price hit a new low
After buying stocks, investors can continue to observe the trend of the future market. If the stock price falls back to a new low in the future, it means that the downward trend is continuing, and investors should sell their shares to stop their losses.
Main points of operation:
1. The lower the position of the K-line when the bottom deviation appears, the stronger the bullish signal of this form is.
2. If the trading volume continues to shrink in the process of bottom divergence, and the trading volume is rapidly magnified after the completion of the bottom divergence, it verifies the signal of weakening short-side power and strengthening multi-party power in the market, and the bullish signal of this form will be stronger.
3. If the K line deviates from the stock price bottom while the D line deviates from the stock price, then the bullish signal of this form will be more reliable.
KDJ selling pattern: line D enters the overbought range.
Morphological introduction:
When the D line breaks through 80, it is a signal that the market has entered the overbought range. This signal indicates that the various forces in the market have reached an extremely strong state, but this strong state may not be sustainable. Once the various forces begin to decline and the short side increases, the stock price will peak and fall, so this is a bearish sell signal.
The first selling point: the D line breaks through 80
When the D line breaks through 80, it shows that many forces are extremely strong, and there are signs of prosperity and decline. At this time, investors can first sell part of their shares and retain a certain position to continue to wait and see.
The second selling point: the D line falls below 80
If the future D line reaches its peak and falls below 80 again, it means that the extremely strong market in the market is over, and the stock price has entered a falling market, and investors should sell all the remaining shares at this time.
Make up the position: the D line breaks through 80 again.
If the D line does not continue to fall after falling below 80, but rises above 80 again, it means that the rising market is still going on, and investors can buy back the shares they have just sold and continue to hold them at a profit.
Main points of operation:
1. The longer the D-line lasts above 80, the more serious the consumption of multi-power will be, and the more room for its decline will be when the stock price peaks and falls in the future.
2. The overbought range of different stocks may be different. Some large-cap stocks with relatively small price fluctuations may enter the overbought range if their D-line breaks through 70, while for some small-cap stocks with large stock price fluctuations, their D-line may break through 85 before they enter the overbought range. Investors can judge the specific overbought range according to the past trend of the stock.
KDJ selling pattern: J line enters the overbought range.
Morphological introduction:
When the J line in the KDJ index breaks through 100, it enters the overbought range. This form shows that the stock price has risen rapidly in a short period of time, and the various forces in the market have been extremely strong. Once the various forces rise and fall, the air power recovers, and the stock price is about to peak and fall.
The first selling point: J line breaks through 100
When the J line breaks through 100, it shows that the various forces in the market have been extremely strong in the short term, and there is the possibility of prosperity and decline. At this time, investors can first sell part of their shares and retain a certain position to continue to wait and see.
The second selling point: J line falls below 100
When the J-line falls below 100 from above 100, it shows that many forces in the market have declined, the power of the short side has begun to strengthen, and the stock price has shown signs of falling. At this time, investors should sell all the remaining stocks as soon as possible to avoid risk.
Make up the position: J line breaks through 100 again.
After selling the stock, investors can continue to observe the trend of the future market. If the J-line rises again in the future, breaking through 100, it means that the rising market is still going on, and investors can buy back the shares they have just sold and continue to hold them.
Main points of operation:
1. Compared with the overbought signal of D line, the overbought signal of J line is more inclined to reflect the rapid rise and fall of stock price in the short term. In the continuous rise or fall of the market, the J-line may be passivated.
2. According to the calculation method of KDJ index, the value of J-line may exceed 100. But in most stock speculation software, the J line of more than 100 is displayed according to 100.
3. After the first selling point of this form appears, the stock price may habitually rise for a period of time. In order to avoid shorting the future market as far as possible, investors can not operate at this time, and then concentrate on selling the stock when the second selling point appears.
KDJ selling form: K line and D line high dead cross
Morphological introduction:
When the K line in the KDJ index falls below the D line from top to bottom, the two form a dead fork. If such a form appears in the high position above 50, it is called a high dead fork.
The dead fork shape of K-line and D-line shows that the multi-party forces in the market are getting weaker and weaker, and the air force is gradually increasing, which is a bearish sell signal. The high above 50 indicates that the stock price is still high and there will be a lot of room for decline in the future.
Selling point: when the dead fork is finished
When the high-level dead fork is completed, the stock has shown signs of peaking and falling, and investors should sell their shares as soon as possible to avoid risk.
Make-up position: K line and D line gold fork
If the K line does not continue to fall after falling below the D line, but rebound, when the K line breaks through the D line and completes the golden fork, it means that the stock price has entered the rising market again, at this time investors can buy back the stocks they have just sold and continue to hold them at a profit.
Main points of operation:
1. The higher the position of KDJ when the dead fork is completed, the more room for the stock price to fall in the future. If the D line is in the overbought range when the dead fork appears, and the D line falls below the overbought range with the completion of the dead fork, the mid-year signal of this form will be stronger.
2. According to the calculation principle of KDJ index, when K line falls below D line, J line must fall below D line at the same time, forming the shape of three curves with dead forks at the same time.
KDJ selling pattern: K-line deviates from the top of the stock price
Morphological introduction:
When the stock price continues to rise and hit a new high at the same time, if the K line in the KDJ index does not reach a new high, but there is a downward trend that is lower than the other, it means that although the stock price is still rising, its rising momentum has become weaker and weaker, and the stock price has a trend of peaking and falling in the future, which is a sell signal.
The first selling point: the K-line deviates from the stock price twice in a row.
When the K-line deviates from the stock price twice in a row, it shows that the various forces in the market have been extremely weak and may not be able to continue to pull up the stock price, when the stock price has peaked and fallen. Investors can first sell some of their shares and retain a certain position to wait and see.
The second selling point: the stock price fell below the previous low
If the share price reaches its peak and falls below the previous pullback point, it shows that the stock price has shown signs of falling, and investors should sell all the remaining shares.
Make up the position: the stock price hit a new high
After investors sell the stock, if the stock price bottoms out and rebounds to a new high, it means that the rising market is still going on, and at this time the investor can buy back the stock that has just been sold and continue to hold it.
Main points of operation:
1. The higher the position of the K line when the top deviation appears, the stronger the bearish signal of this form is.
2. If the trading volume continues to shrink in the process of top deviation, it verifies the signal that many forces in the market continue to shrink, and the bearish signal of this form will be stronger.
3. If the K line deviates from the top of the stock price while the D line deviates from the stock price, then the bearish signal of this form will be more reliable.
In the KDJ index, the range of K value and D value is 0-100, while the value range of J value can be more than 100 and less than 0, but in the analysis software, the range of KDJ is 0-100. Generally speaking, in terms of sensitivity, J value is the strongest, K value is the second, D value is the slowest, and as far as safety is concerned, J value is the worst, K value is the second, and D value is the most stable.
Shortcomings of KDJ metrics:
The main contents are as follows: 1. Blind area of unilateral passivation. When the stock unilateral trend rises, the KDJ index will continue to be in the overbought area, which may cause many investors to sell ahead of time, or a small pullback in the stock price may cause the KDJ index to fall rapidly and sharply, causing panic to investors; on the contrary, in the trend unilateral decline, the KDJ index will continue to send wrong signals, which will cause great difficulties to investors in actual operation.
2. Effective golden fork and invalid golden fork of KDJ index. Except in the unilateral trend market, the stock price does not rise but falls after buying stocks according to the KDJ golden fork in some concussive market, which is the ineffective golden fork.
How to deal with the defects of KDJ indicators?
1. Find auxiliary indicators: other indicators can make up for each other's shortcomings, such as matching moving averages, trend indicators and other auxiliary judgment.
2. Adjust the parameters: adjust the parameters of the index for different stocks according to different market conditions.
3. Multi-cycle cooperation: we can combine the KDJ technical index of weekly K line and daily K line to judge.
KDJ buying pattern: line D enters the oversold range.
Morphological introduction:
In the three curves of the KDJ index, when the D line continues to fall, falling below 20:00, it has entered the oversold range. This pattern shows that after a continuous decline, the short force in the market has been extremely strong, but its room to continue to strengthen in the future has been very limited. In the future, with the shrinking of the air force and the enhancement of various forces, the stock price will bottom out and rebound.
First buy point: d line falls below 20
When the D line in the KDJ index falls below 20:00, it means that the market has entered a state of oversold, and the stock price may bottom out and rebound in the future, at this time investors can first establish some positions.
The second buying point: the D line breaks through 20.
When the D line returns to above 20 again after running below 20 for a period of time, it shows that the extremely strong short side in the market is over, and the stock price has seen signs of bottoming out. At this time, investors can boldly buy stocks and complete Jiancang.
Stop position: d line falls below 20 again
If the D line does not continue to rise after breaking through 20, but falls again after a small rise, falling below 20, it shows that the short side in the market is still strong, and many parties are unable to continue to lengthen the stock price, and investors should sell their shares to stop loss.
Main points of operation:
1. The longer the D-line lasts in the oversold range, the more serious the depletion of short power will be, and the stock price will have more room to rise in the future.
2. If the D-line breaks through 20 and the trading volume is magnified synchronously, it means that the multi-party power begins to strengthen, and the bullish signal of this form will be more reliable.
3. The oversold range of different stocks may vary. For some large-cap stocks with relatively small price fluctuations, if their D-line falls below 30, they may enter the oversold range, while for some small-cap stocks with large stock price fluctuations, their D-line may fall below 15 before they enter the oversold range. Investors can judge the specific oversold range according to the past trend of the stock.
KDJ buying pattern: J line enters the oversold range.
Morphological introduction:
Among the three curves of KDJ index, J line is the one that fluctuates most frequently. When the curve falls below zero, the market has entered the oversold range. This pattern shows that with the rapid decline of stock prices in a short period of time, the short-side force in the market has been extremely strong. Once the power of the air side rises and falls, and the power of many parties increases, the stock price will bottom out and rebound.
The first buying point: J line falls below 0
When the J-line falls below 0, it means that the short-side kinetic energy in the market has been released in a short period of time, and it is estimated that there will be a bottoming trend in the future with the strengthening of various forces. At this time, investors can buy a small amount of shares and set up some positions.
The second buying point: J line breaks through 0 value.
If the J line runs below the 0 value for a period of time and then breaks through the 0 value, it means that the stock price has begun to rise, and investors can actively buy stocks and complete Jiancang.
Stop position: J line falls below 0 again
If the J-line does not continue to rise after breaking through the zero value, it reaches its peak and falls below the zero value again, which means that the short side is still strong and many parties are unable to pull up the stock price. At this time, investors should sell their stocks to stop losses.
Main points of operation:
1. Compared with the oversold signal of D line, the oversold signal of J line is more inclined to reflect the rapid rise and fall of stock price in the short term. In the continuous rise or fall of the market, the J-line may be passivated.
2. According to the calculation method of KDJ index, the value of J-line may be negative, but the value of negative J-line is displayed in most stock speculation software.
3. After the emergence of the first buying point in this form, the stock price may habitually fall for some time. In order to avoid losses as far as possible, investors can not operate at this time, and then concentrate on buying stocks when the second buying point appears.
KDJ buying form: K line and D line low gold fork
Morphological introduction:
The K line and D line in the KDJ index can represent the rising and falling momentum of the stock price. Among them, K line represents the momentum of stock price rise and fall in the short term, and D line represents the momentum of stock price rise and fall in the long term. When the K line breaks through the D line upward, they form the golden fork shape of the KDJ index. This pattern shows that the upward momentum of the stock price has an increasing trend in the short term, which is a bullish buy signal.
If this form appears in the low level below 50, it means that the stock price has just entered the rising market at this time, and there is still a lot of room for rise in the future, and the bullish signal of this form will be stronger.
Buy some: when the golden fork is finished
When the low golden fork is completed, the stock price has a continuous upward trend, at this time investors can actively buy stocks, holding shares waiting to rise.
Stop position: K line and D line dead cross
If the K line does not continue to rise after breaking through the D line, but reaches its peak and falls below the D line, it means that the upward momentum of the stock price is still weak, which is not enough to continue to pull up the stock price. At this time, investors should sell the stocks they have just bought and stop their losses as soon as possible.
Main points of operation:
1. The lower the position of the KDJ index when the golden fork appears, the more room for the stock price to rise in the future. If the D line is in the oversold range when the golden fork appears, and as the golden fork completes the D line also breaks through the oversold range, then the bullish signal of this form will be stronger.
2. According to the calculation principle of KDJ index, when the K line breaks through the D line, the J line must break through the D line at the same time, forming the shape of three curves with golden forks at the same time.
3. If the trading volume is also gradually enlarged at the same time of the golden fork of K line and D line, the signal of continuous strengthening of multi-party power is verified, and the bullish signal of this form will be stronger.
KDJ buying pattern: K line deviates from stock price bottom
Morphological introduction:
While the stock price continues to fall and hit a new low, if the K line in the KDJ index is not innovative low, but there is a rising trend of a bottom higher than a bottom, it means that although the stock price is still falling, the momentum of sellers in the market has gradually weakened, and the stock price has bottomed out and rebounded in the future, which is a bullish buy signal.
The first buying point: the K-line deviates from the stock price twice in a row.
When the K-line and the stock price deviate from the bottom again in a row, the seller's strength is likely to have become very weak, and the stock price has bottomed out at this time. Investors can buy a small amount of stocks first and establish some positions.
The second buying point: the stock price breaks through the previous high
After the completion of the continuous bottom deviation, if the stock price can break through the high point of the previous rebound, it means that many forces have begun to pull up the stock price. At this time, the stock price is about to enter a rising market, and investors can actively buy stocks and complete Jiancang.
Stop-loss position: share price hit a new low
After buying stocks, investors can continue to observe the trend of the future market. If the stock price falls back to a new low in the future, it means that the downward trend is continuing, and investors should sell their shares to stop their losses.
Main points of operation:
1. The lower the position of the K-line when the bottom deviation appears, the stronger the bullish signal of this form is.
2. If the trading volume continues to shrink in the process of bottom divergence, and the trading volume is rapidly magnified after the completion of the bottom divergence, it verifies the signal of weakening short-side power and strengthening multi-party power in the market, and the bullish signal of this form will be stronger.
3. If the K line deviates from the stock price bottom while the D line deviates from the stock price, then the bullish signal of this form will be more reliable.
KDJ selling pattern: line D enters the overbought range.
Morphological introduction:
When the D line breaks through 80, it is a signal that the market has entered the overbought range. This signal indicates that the various forces in the market have reached an extremely strong state, but this strong state may not be sustainable. Once the various forces begin to decline and the short side increases, the stock price will peak and fall, so this is a bearish sell signal.
The first selling point: the D line breaks through 80
When the D line breaks through 80, it shows that many forces are extremely strong, and there are signs of prosperity and decline. At this time, investors can first sell part of their shares and retain a certain position to continue to wait and see.
The second selling point: the D line falls below 80
If the future D line reaches its peak and falls below 80 again, it means that the extremely strong market in the market is over, and the stock price has entered a falling market, and investors should sell all the remaining shares at this time.
Make up the position: the D line breaks through 80 again.
If the D line does not continue to fall after falling below 80, but rises above 80 again, it means that the rising market is still going on, and investors can buy back the shares they have just sold and continue to hold them at a profit.
Main points of operation:
1. The longer the D-line lasts above 80, the more serious the consumption of multi-power will be, and the more room for its decline will be when the stock price peaks and falls in the future.
2. The overbought range of different stocks may be different. Some large-cap stocks with relatively small price fluctuations may enter the overbought range if their D-line breaks through 70, while for some small-cap stocks with large stock price fluctuations, their D-line may break through 85 before they enter the overbought range. Investors can judge the specific overbought range according to the past trend of the stock.
KDJ selling pattern: J line enters the overbought range.
Morphological introduction:
When the J line in the KDJ index breaks through 100, it enters the overbought range. This form shows that the stock price has risen rapidly in a short period of time, and the various forces in the market have been extremely strong. Once the various forces rise and fall, the air power recovers, and the stock price is about to peak and fall.
The first selling point: J line breaks through 100
When the J line breaks through 100, it shows that the various forces in the market have been extremely strong in the short term, and there is the possibility of prosperity and decline. At this time, investors can first sell part of their shares and retain a certain position to continue to wait and see.
The second selling point: J line falls below 100
When the J-line falls below 100 from above 100, it shows that many forces in the market have declined, the power of the short side has begun to strengthen, and the stock price has shown signs of falling. At this time, investors should sell all the remaining stocks as soon as possible to avoid risk.
Make up the position: J line breaks through 100 again.
After selling the stock, investors can continue to observe the trend of the future market. If the J-line rises again in the future, breaking through 100, it means that the rising market is still going on, and investors can buy back the shares they have just sold and continue to hold them.
Main points of operation:
1. Compared with the overbought signal of D line, the overbought signal of J line is more inclined to reflect the rapid rise and fall of stock price in the short term. In the continuous rise or fall of the market, the J-line may be passivated.
2. According to the calculation method of KDJ index, the value of J-line may exceed 100. But in most stock speculation software, the J line of more than 100 is displayed according to 100.
3. After the first selling point of this form appears, the stock price may habitually rise for a period of time. In order to avoid shorting the future market as far as possible, investors can not operate at this time, and then concentrate on selling the stock when the second selling point appears.
KDJ selling form: K line and D line high dead cross
Morphological introduction:
When the K line in the KDJ index falls below the D line from top to bottom, the two form a dead fork. If such a form appears in the high position above 50, it is called a high dead fork.
The dead fork shape of K-line and D-line shows that the multi-party forces in the market are getting weaker and weaker, and the air force is gradually increasing, which is a bearish sell signal. The high above 50 indicates that the stock price is still high and there will be a lot of room for decline in the future.
Selling point: when the dead fork is finished
When the high-level dead fork is completed, the stock has shown signs of peaking and falling, and investors should sell their shares as soon as possible to avoid risk.
Make-up position: K line and D line gold fork
If the K line does not continue to fall after falling below the D line, but rebound, when the K line breaks through the D line and completes the golden fork, it means that the stock price has entered the rising market again, at this time investors can buy back the stocks they have just sold and continue to hold them at a profit.
Main points of operation:
1. The higher the position of KDJ when the dead fork is completed, the more room for the stock price to fall in the future. If the D line is in the overbought range when the dead fork appears, and the D line falls below the overbought range with the completion of the dead fork, the mid-year signal of this form will be stronger.
2. According to the calculation principle of KDJ index, when K line falls below D line, J line must fall below D line at the same time, forming the shape of three curves with dead forks at the same time.
KDJ selling pattern: K-line deviates from the top of the stock price
Morphological introduction:
When the stock price continues to rise and hit a new high at the same time, if the K line in the KDJ index does not reach a new high, but there is a downward trend that is lower than the other, it means that although the stock price is still rising, its rising momentum has become weaker and weaker, and the stock price has a trend of peaking and falling in the future, which is a sell signal.
The first selling point: the K-line deviates from the stock price twice in a row.
When the K-line deviates from the stock price twice in a row, it shows that the various forces in the market have been extremely weak and may not be able to continue to pull up the stock price, when the stock price has peaked and fallen. Investors can first sell some of their shares and retain a certain position to wait and see.
The second selling point: the stock price fell below the previous low
If the share price reaches its peak and falls below the previous pullback point, it shows that the stock price has shown signs of falling, and investors should sell all the remaining shares.
Make up the position: the stock price hit a new high
After investors sell the stock, if the stock price bottoms out and rebounds to a new high, it means that the rising market is still going on, and at this time the investor can buy back the stock that has just been sold and continue to hold it.
Main points of operation:
1. The higher the position of the K line when the top deviation appears, the stronger the bearish signal of this form is.
2. If the trading volume continues to shrink in the process of top deviation, it verifies the signal that many forces in the market continue to shrink, and the bearish signal of this form will be stronger.
3. If the K line deviates from the top of the stock price while the D line deviates from the stock price, then the bearish signal of this form will be more reliable.
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steady Pom pipi OP : This explanation is a bit complicated; you can take a moment to read![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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