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Practical Skills of KDJ Index

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Practical skills of KDJ indicators. The core principle of practical application of random indicators: because of the rapid change of this indicator, there are more buying and selling signals. Therefore, in practical application, we should adhere to the principle of "one stop, two looks, three passes".

1: Application of Cross Analysis Principle of Random Index

As long as investors have a little knowledge of technical indicators, they all know that the low gold of random indicators is a buy signal, and the high dead fork is a sell signal. But how about the actual application effect? Since stochastic indicators were first used in European and American futures markets, they are more sensitive and fluctuate quickly. Therefore, there are more opportunities for golden forks or dead forks in the stock market. If investors operate completely according to the signal, they will be exhausted and gain little. equity market

The more effective method is to implement the investment principle of "one stop, two looks, three passes": that is, when random indicators form a golden cross for the first time, investors should not immediately operate, but should wait and see; When the random index has a second golden fork, investors can decide whether to buy by looking at the level of the index cross position and the capacity of individual stocks. If the position of Jincha is below 25, and the trading volume is effectively enlarged, you can timely introduce people; otherwise, you will continue to wait and see. When the random index appears the third golden fork at the same position in a short time, and the bottom deviation between the index and the stock price is formed, it indicates that the stock will rise sharply in the future market, and investors can buy it.

This method can also be used for random indicators with dead cross at high position, but it is more effective when the dead cross is above 75. Basic knowledge of stock

2: The application of single index line analysis principle of random index

Random indicators include three indicator lines, namely, K, D and J lines. The analysis principle of each indicator line is different.

1. K-line analysis of random indicators

The K line of random indicators needs to be combined with the trend line for analysis. Trend line refers to the line connecting two or more high points or two or more low points of the random indicator K line, which can be divided into support line and resistance line. When the indicator K line cannot break below the support line, it is a buy signal; when the indicator K line cannot break above the resistance line, it is a sell signal. How do beginners get started in stock trading

2. D-line analysis of random indicators

Line D is used for the analysis of overbought and oversold. The position of Line D has very important research value. Most important top and bottom positions occur in areas where the D value is greater than 80 or less than 20. Through the analysis of the D value, the stage of market development can be identified.

3. J-line analysis of random indicators

The sensitive J line is used for short line operation. The J line can reflect the deviation between K and D values, and can lead to find the short-term head or bottom. When the value of J is greater than 100, especially 110, the index tends to adjust after hitting a new high; When the value of J is less than 0, especially less than - 10, the index tends to rebound after a new low. Buying and selling skills

3: Deviation of Random Index and Application of Passivation Principle

The deviation of random indicators refers to the divergence between stock prices and indicators. When the index or stock price reaches a new high, the random K and D values do not match the new high, and they are also lower than each other. This is top deviation, which is an obvious sell signal; On the contrary, when the index or stock price reaches a new low, the random K and D values do not match the new low, but instead rise from wave to wave, which is a deviation from the bottom and an obvious buying signal. (Shareholders College: http://www.58188.com )

In a strong rising market, when the stock price or index rises to a certain extent, the random indicators will not follow the rise, and the K and D values will not change much. Similarly, a similar situation will occur in the continuous decline, which is the high or low passivation of random indicators. The passivation of indicators does not mean that the stock price will stop rising. If investors sell stocks prematurely due to the passivation of indicators at a high level, they will often miss a bull market. In a bear market, low passivation does not mean that the market has stopped falling. Stock recommendation

The passivation and deviation of random indicators are similar. The key difference between the two is that deviation is the opposite movement of indicators and stock prices, while passivation is that indicators cannot continue to rise or fall with stock prices.

Although the deviation of random indicators is similar to the passivation phenomenon, the results of the market evolution are quite different. Deviation means that the market will turn, while passivation means that the market is still likely to continue the original direction of development. In order to more accurately study and judge the development direction of the trend, when the indicator is passive, investors need to analyze it in combination with the midline indicator MACD.

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