Application KDJ

 1, in general, D line from the next turn for the buy signal, the sell signal on the turn under.
2, KD in the range of 0 to 100 wave, 50 for the long and short equilibrium line. If in multiple markets, the support line 50 is retreated; if the market in the short side, 50 is the line of pressure rebound.
3, K line in the low line on the buy signal through D, K line under high D line is sold through the signal.
4, K wire into the overbought zone above 90, 10 The following is the oversold zone; D line into the overbought zone above 80, 20 The following is the oversold zone. should pay attention to the trading opportunity.
5, high-end line of the M-shaped zone D is common at the top to form the second line of the head appears, and K D line beneath the second is the sell signal. low area W D line is a common form to the bottom of the form, and K when the second line the bottom of the second on the D line is wearing a buy signal. M-shaped or W-shaped second appears, if the place and price to deviate from, are called action to provide credible judge. Usually, when J is greater than 100 or less than 10 is considered the time taken to trading action.
7, KDJ is essentially a stochastic volatility index, so the calculation formula of N values are generally smaller value to 5 to 14 is appropriate, based on the characteristics of the market or use of goods. However, the KDJ applied weekly or monthly charts, but also can be used as a tool for long-term forecast.
KDJ and the integrated use of Bollinger Bands
KDJ indicator is overbought and oversold indicators, Bollinger Bands are supporting pressure categories of indicators. combination of the two advantages: the signal can make more precise indicators KDJ, Meanwhile, the price index system at K Line Bollinger Bands in the index, the price often reflects the trends of the mid-term operation, thus using the two indicators to determine the short-term fluctuations in price in the end, or mid-term fluctuations play a role, especially for Prices peaked in the end determine the short-term (bottom), or into the medium term is up (down), with fairly good results.
We know Bollinger in a pressure on the rail, the rail and lower rails are supported (pressure) effect, so when prices fell to a Boolean or rail line to the downside, you can ignore the signal from KDJ indicator to take action. Of course, if you come to the low KDJ indicator, then the short-term trend should be regarded as mutual authentication of the results of medium-term trend, and take a more active strategy of operation.
it should be noted that, when prices fell to Bryn rail line, even if there are support and stabilization, KDJ indicators also rose simultaneously, trends in turn have the signals can be issued, it is only up to grab a rebound. And when KDJ indicator onto 80 high, and take action to sell more appropriate, because when the stock price fell below the rail line will lead to a Boolean Boolean Line narrow openings, at least at this time to repair targets of consolidation for a long time, so that the downside risk in terms of prevention, or from the point of view to consider the opportunity cost of holding, are not appropriate to continue to hold.
Finally, to sum up KDJ indicators and the integrated use of the principle of indicator Bollinger Bands: Bollinger Bands that is mainly judged on the price trend for middle to KDJ indicators, supplemented by short-term price trend judgments, KDJ indicator trading signals issued by the need to use Boolean line to verify the match, if both are given the same instruction, then the sale of high accuracy.
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