2. In band trading, traders can set the kdj index to (18,3,3) as a guiding operation, because the signal given by the (18,3,3) parameter is relatively stable and suitable for mid-term traders.
In addition, setting kdj index with (24, 3, 3) as the parameter can eliminate the false signal caused by price fluctuation to a greater extent, and it is also a better choice to find the midline buying point or midline selling point of the price.
Extended data
The usual usage of KDJ indicator 60 minutes after adjusting parameters is:
1, K & gt80, indicating that the short-term market and individual stocks have entered a strong region, and those below 80 are weak;
2. K & lt20, indicating that short-term markets and individual stocks enter the bottom area, J> 103 is short-term overbought, and the index or stock price has echo requirements; J<- 10 is a short-term oversold, and the index or stock price has a strong demand for recovery.
3. The K line breaks through the D line below 20, and the K line effectively breaks through 20, and the index or stock price breaks through the 8-hour moving average as a buy signal; When the K line falls below the D line above 80 and the K line effectively falls below 80, it is a standard short-term selling signal.
4. When the intersection of K line and D line appears below 80 and above 20, it can be filtered out as clutter, which has no reference significance.
Baidu Encyclopedia -KDJ Index