2. Morphological methods. Because of the sensitivity of KDJ index, the index it gives is often ahead, so we can help find out the correct trading point through the form of KDJ index. The KDJ index will be restocked when it forms W bottom, triple bottom and head and shoulder bottom at a low level; In a strong market, when the KDJ indicator forms M-head and head-shoulder top at a high level, the signal reliability of shipment will be enhanced.
3. Wave counting method. The combination of KDJ index and wave counting is a very effective method. On the K-line chart, we can often clearly distinguish the rising patterns of one wave, three waves and five waves. On the K-line chart, the stock price stopped at the bottom and began to rise. Usually, when the first wave rises, the KDJ indicator will signal cross-shipment. At this time, we can pay less attention to this selling signal, because it is likely to be a wrong signal or a cheating signal. When the stock index moves towards the third wave, we will pay more attention to the selling signal. When the stock index runs to the obvious fifth wave, if the KDJ indicator gives a selling signal, we will resolutely ship. At this time, the signal given by KDJ indicator is usually a very accurate signal. When the stock index just finished rising and began to fall, the buying signal of KDJ indicator was less considered in the first wave of decline. Only when the stock index fell in the third wave or The 5th Wave, the buying signal of KDJ indicator was considered, especially after falling for five waves.
4. Trend line method. When the stock index or stock price enters a very strong market or a very weak market, the stock index will form a unilateral upward trend and a unilateral downward trend; In the unilateral downward trend, KDJ indicators will send out buy signals or low passivation many times. If investors follow the buying signal, they will be trapped prematurely, and some will buy at a very low price. In this way, the stock price will continue to fall, as low as possible.