When KDJ and K-line are synchronously below (that is, KDJ crosses the 20-minute line and K-line is at the lower Bollinger track), go long

When KDJ and K-line are synchronously in the upper direction (that is, KDJ crosses the 80-point line and K-line is on the upper Bollinger track), go short

The KDJ indicator, also known as the stochastic indicator, reflects the market price trend and fluctuations, and can effectively judge the market buying and selling situation. The KDJ indicator is composed of three curves, K\D\J, which are interrelated. The K value line reflects the recent stock price, the D value line reflects the average price, and the difference between the first two constitutes the J value line.

KDJ indicator is the most commonly used indicator to judge the degree of deviation of the current price. The K\D\J three values ​​are calculated through the highest price, lowest price and closing price in a specific period, and then the strength of the market buying and selling signals is judged. When the K\D\J three values ​​are above 80, it is the overbought zone, when the three values ​​are below 20, it is the oversold zone, and between 20-80 is the hovering zone.

According to this classification, when KD exceeds 80, you should consider selling, and when it is below 20, you should consider buying. The above classification is only a preliminary process of applying the KD indicator. It is only a signal. It is easy to incur losses if you operate completely according to this method. It must be combined with other indicators as a synchronous reference. Only in this way can the accuracy be improved.

Consider the shape of the KD indicator curve. When the KD indicator forms a head and shoulders pattern and multiple tops (bottoms) at a higher or lower position, it is a signal to take action. Note that these patterns must appear at a higher or lower position. The higher or lower the position, the more reliable the conclusion. #BTC #ETH #Binance