The stochastic indicator, known as KDJ in English for short,...

The stochastic indicator, known as KDJ in English for short, is a medium- to short-term analysis tool. It is mainly used to reflect the strength and weakness of trading power in the market and the phenomenon of overbought and oversold. It can send accurate trading signals before stock prices rise or fall.

This indicator was pioneered by Dr. George Lann. Based on statistical principles, the highest price, the lowest price, and the last closing price that occurred in a certain period are used as basic data to calculate the immature random value RSV of the last calculation period, then K values, D values, and J values are determined according to the method of smooth moving average, and drawn as corresponding curves to determine the market.