The KDJ indicator has the following characteristics:

First, the KDJ indicator consists of three curves: K, D, and J. The fastest fluctuating curve is J, followed by K, and D curve is the smoothest and safest.

Second, the values of K and D range from 0 to 100, with 50 as the dividing line between long and short for the KDJ indicator. When the KDJ indicator is above the 50-axis line, it indicates a bullish market; when the KDJ indicator is below the 50-axis line, it indicates a bearish market.

Third, the KDJ indicator is also a very important overbought and oversold indicator. When the KDJ indicator enters the area above the 80 line, it indicates that the indicator is in an overbought state; when the KDJ indicator enters the area below the 20 line, it indicates that the indicator is in an oversold zone.

Fourth, when the J value is greater than 100, curve J will touch the top, indicating that curve K is much higher than curve D, and the probability of short-term top in stock price increases; when the J value is less than 0, curve J will touch the bottom, indicating that curve K is much lower than curve D, and the probability of short-term bottom in stock price increases.

Fifth, when both curve K and curve D hover around 50, whether it is a golden cross or a death cross, it has no reference significance.

Sixth, when the stock price is in a unilateral rise, unilateral fall, or consolidation market, the KDJ indicator will frequently appear golden cross and death cross, indicating that the indicator has become dull. At this time, the trading signals issued by the KDJ indicator have no market significance.