KDJ indicator of the Chinese name is a random index, originated in the futures Futures Contract market.

The application of law KDJ KDJ indicator index is three curves, mainly from the application of five aspects to consider: KD values ​​of the absolute number; KD curve shape; KD indicators cross; KD indicators departure; J index values size.

First, consider the value of KD. KD is the range of 0 to 100, can be divided into several areas: 80 or more as overbought zone, below 20 is oversold area, the rest is hovering area.

According to this classification, KD should be considered more than 80 sold, less than 20 should consider buying a. It should be noted

Is that this distinction is only a preliminary application of the process of KD indicators, only a signal to operate entirely according to this method is easy to incur losses.

Second, the curve shape from KD indicators considerations. When KD indicators higher or lower position in the formation of a head and shoulder shape and multiple top (bottom), the signal for action. Note that these forms must be in a higher position or lower position there, the higher or lower position, the more reliable conclusions.

Third, consider the intersection of KD indicators. The relationship between K and D is like the relationship between price and MA, there are also gold XAU death cross and cross-cutting issues, but here is a very complex cross-application, but also with many other conditions.

From the bottom up with K and D Cross, for example: K D is wearing on the MACD for buy signals. But there should buy MACD

Income, but also the other conditions. The first condition is the location of Jin Cha should be relatively low, the location is in the oversold area, the lower the better.

The second condition is the number of D intersect. Sometimes low, K, D to cross back and forth several times. The number to cross is at least 2 times, the better.

The third condition is the intersection of line relative to KD low position, it is often said that “the right of the intersection” principle. K is already rearing its head up when the D intersect with D, also decreased when compared with D intersects with much more robust.

Fourth, from KD’s departure from the considerations of indicators. At high or low in the KD, if there is a departure from the trend with the price, it is a signal to take action.

Fifth, J index values ​​over 100 and less than 0, are the price of non-normal area greater than 100 as overbought, oversold small.