The KDJ index has the following characteristics

First, the KDJ index consists of three curves: K, D, and J. Among them, curve J has the fastest fluctuation, followed by curve K, curve D is the smoothest and safest.

Second, the K value and D value range are between 0 and 100, and 50 is the multi-empty dividing line of the KDJ index value. When the KDJ indicator is above the 50 central axis, it indicates that the market is in a bullish market; when the KDJ indicator is below the 50 central axis, it indicates that the market is in a short market.

Third, the KDJ indicator is also a very important overbought and oversold indicator. When the KDJ indicator enters the region above the 80 line, it indicates that the indicator is overbought; when the KDJ indicator is below the 20 line, it indicates that the indicator is in the oversold region.

Fourth, when the J value is > 100, curve J will touch the top, indicating that curve K is already much higher than curve D, and the probability that the stock price will peak in the short term increases; when the J value is <0, curve J will touch the bottom, indicating that curve K is already far below curve D, and the probability that the stock price will bottom out in the short term increases.

Fifth, when curve K and curve D both hover around 50, whether a gold fork or a dead fork appears, there is no reference point.

Sixth, when the stock price rises unilaterally, falls unilaterally, or consolidates the market, the KDJ indicator will frequently show gold forks and dead crosses. This indicates that the indicator has passivation. At this time, the trading signals sent by the KDJ index have no market meaning.