The definition of KDJ, and the algorithm formula for its three parameters?

2 thoughts on “The definition of KDJ, and the algorithm formula for its three parameters?”

  1. First, the definition of KDJ:
    kdj full name is random indicator (), which is created by Dr. George Lane in the United States. A technical analysis tool commonly used in the securities futures market. KDJ is a concept of random fluctuations, reflects the strength of the price trend and the trend of the band, which is very sensitive to grasping the short -term market trend.

    The calculation formula of the three parameters:
    Taking the KDJ of the 9 -day cycle as an example, first calculate the "immature random value" of the last nine days, that is, the RSV value, the calculation of its calculation, and its calculation. The formula is as follows: RSVT = (CT-L9) / (H9-L9) * In 100: CT --- The closing price of the day of the day L9 --- The lowest price of the lowest price within 9 days within 9 days. After obtaining the RSV value, the K value and D value can be found: the K value is the RSV value of the 3 -day smooth moving average, and the 3 -day smooth moving average of the D value is three times the k value. The calculation formula obtained is: KT = RSVT / 3 2 * KT-1 /3 DT = KT / 3 2 * DT-1 /3 JT = 3 * DT-2 * KT after smooth operation, the base period is different from different periods. The KD value will tend to be consistent without any difference. The K value and D value will always be between 0 and 100.

  2. The Chinese name of the KDJ indicator is a random index, which originated in the futures market.

    The application rules of the KDJ indicator KDJ indicator is three curves. During the application, it is mainly considered from five aspects: the absolute number of the value of the KD; the form of the KD curve; the cross of the KD indicator; the KD indicator Disposter; the value of the J indicator.

    The first, consider the value of KD. The value range of KD is 0 to 100, which divides them into several areas: 80 or more are over -buying areas, less than 20 as a oversold area, and the rest are wandering areas.

    Axing according to this division, KD should consider selling more than 80, and should consider buying below 20. The

    is that the above -mentioned division is just a preliminary process of applying the KD indicator. It is just a signal. It is easy to cause losses in this method.

    The second, consider the form of the KD index curve. When the KD indicator forms the head and shoulder shape and multiple tops (bottoms) in a higher or lower position, it is a signal of action. Note that these forms must appear in higher or lower positions, the higher or lower the position, the more reliable the conclusion.

    Third, consider the cross of the KD indicator. The relationship between K and D is just like the relationship between the stock price and the MA. There are also problems of death and gold crossing. However, the application here is very complicated, and many other conditions are attached.

    The cross from bottom to D as an example: K wear D on the top of K is a golden fork to buy a signal. However, whether the golden fork should buy

    , it depends on other conditions. The first condition is that the position of the golden fork should be relatively low. It is the position of the oversold area. The lower the better.

    The second condition is the number of intersection with D. Sometimes at low, K and D have to cross several times back and forth. The number of crosses is the least, the more the more.

    The third condition is the position of the cross point of the cross point relative to the KD line. This is often the principle of "right intersection". K is to intersect with D when D has raised up, and it is much more reliable than when D decreases.

    Fourth, consider the departure of the KD indicator. At high or low in KD, if there is a departure from the stock price, it will take a signal of action.

    Fifth, the J indicator is more than 100 and lower than 0. It is a non -normal area of ​​the price. It is more than 100 over 100 and small 0 is oversold.

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