Hello, the difference between kdj indicator and rsi indicator:
1. Different concepts
RSI was first used in futures trading, and later people discovered that it The effect of using indicators to guide stock market investment is also very good, and the characteristics of the indicators are constantly summarized and summarized. Now, RSI has become one of the most widely used technical indicators by investors.
The KDJ indicator, also called the stochastic indicator, is a fairly new and practical technical analysis indicator. It was first used in the analysis of the futures market, and later was widely used in the short- and medium-term trend analysis of the stock market. It is a futures and the most commonly used technical analysis tools in the stock market.
2. Different calculation methods
RSI indicator calculation formula: N-day RSI = average closing increase in N days/(average closing increase in N days + average closing decrease in N days) × 100.
From the above formula, we can know the technical meaning of the RSI indicator, that is, comparing the upward force with the downward force. If the upward force is greater, the calculated indicator will rise; if the downward force is greater, the calculated indicator will rise. If it is large, the indicator will drop, and the strength of the market trend can be calculated from this.
The calculation of DJ is more complicated. First, the RSV value of the period (n days, n weeks, etc.) must be calculated, that is, the immature stochastic indicator value, and then the K value, D value, J value, etc. must be calculated. Taking the calculation of the n-day KDJ value as an example, the calculation formula is n-day RSV=(Cn-Ln)/(Hn-Ln)×100.
In the formula, Cn is the closing price on the nth day; Ln is the lowest price within n days; Hn is the highest price within n days. Secondly, calculate the K value and D value: K value of the day = 2/3 × K value of the previous day + 1/3 × RSV of the day. The current day’s D value = 2/3 × the previous day’s D value + 1/3 × the current day’s K value. If the K value and D value of the previous day are not available, they can be replaced by 50 respectively.
3. Different application rules
KDJ indicator application rules: when the indicator is >80, the probability of retracement is high; when the indicator is <20, the probability of rebound is high. When %K crosses %D upwards around 20, it is considered a buy signal. When %K crosses %D downwards around 80, it is considered a sell signal. When %J>100, the stock price is likely to reverse and fall; when %J<0, the stock price is likely to reverse and rise.
Any signal where KDJ fluctuates around 50 has little effect. %J switch parameters: 0 means no drawing, 1 means %J=3D-2K, 2 means %J=3K-2D.
RSI indicator application rules: RSI>20 is overbought; RSI<20 is oversold. RSI takes 50 as the middle line. If it is greater than 50, it is considered a long market, and if it is less than 50, it is a short market. When the RSI forms an M head or head-and-shoulders top pattern above 80, it is considered a downward reversal signal.
When RSI forms a W bottom or head and shoulders bottom pattern below 20, it is regarded as an upward reversal signal. When RSI breaks above its high line, buy; when RSI falls below its low line, sell.
Risk disclosure: This information is partly compiled from the Internet and does not constitute any investment advice. Investors should not use such information to replace their independent judgment or make decisions solely based on such information. It does not constitute any buying and selling operations. No earnings are guaranteed. If you operate by yourself, please pay attention to position control and risk control.