rsi and kdj are two important indicators for stock analysis. The most effective indicators are: KDJ and RSI. KDJ is also called the stochastic indicator, which originated from the early futures market. So which of the two is more suitable for the short-term?
Which one of rsi or kdj is suitable for the ultra-short-term?
Both RSI and KDJ are more suitable for ultra-short-term trading. The choice of RSI or KDJ in short-term trading should be based on actual needs. If you want to grasp a quick and accurate market entry point and tolerate higher risks, you can choose to use KDJ for ultra-short-term operations.
1. When the K line crosses the D line from below, a golden cross is formed, which is a buying signal. Investors can consider buying some stocks at this time, among which the kdj golden cross position The lower it is, the stronger the buy signal; when the K line crosses the D line from top to bottom, it forms a dead cross, which is a sell signal. The higher its position, the stronger the sell signal.
2. When the values ??of k, d, and j are below 20, it is an oversold zone, which is a buying signal. Investors can consider buying some at this time. On the contrary, when k, When the three values ????of d and j are above 80, it is an overbought zone, which is a selling signal. Investors can consider selling their stocks at this time. When the three values ????of k, d, and j are between 20-80, It is a wandering zone, which is a wait-and-see signal. Investors can consider continuing to wait and see at this time, and wait until the trend is clear before making buying and selling decisions.
RSI has the following skills:
1. When RSI breaks through the 80 area on the 6th, it means that the stock price has entered an overbought market with extremely strong buyers in the short term, and the stock price will be There will be a peaking and falling trend, which is a selling signal. When the rsi falls below the 20 area on the 6th, it means that the stock price has entered an oversold market with extremely strong sellers in the short term, and the stock price will bottom out and rebound in the future. A trend is a buying signal.
2. When the stock price continues to hit new highs in the rising market, the RSI on the 6th does not reach a new high, but appears lower than the previous one, forming a pattern of divergence between the RSI on the 6th and the top of the stock price, indicating that the stock price is rising. market, but the rising momentum weakens, and the stock price has the risk of peaking and falling in the future, it is a sell signal. On the contrary, it is a bottom divergence, which is a buy signal.
3. When the 6-day RSI line crosses downward from the 12-day RSI line, the intersection formed is a dead cross, indicating that the upward momentum is getting weaker and weaker, the downward momentum is increasing, and the stock price will rise rapidly in the future. Falling is a sell signal. On the contrary, when the 6-day RSI line crosses upward from below the 12-day RSI line, the intersection formed is a golden cross, which is a buy signal.
At the same time, investors can use the kdj indicator and the rsi indicator together to increase the accuracy of the signal.