When the value of KDJ is lower than 20, it means KDJ is oversold. This situation means that more than 80% of investors are selling, or only 20% of people in the market are buying.

When the index value is around 20, in this case, investors should buy as soon as they encounter the golden cross, but they should also note that the effective requirement of the kdj line golden cross is k>=d20%;

When the weekly and daily KDJ values ​​of the intraday price are lower than 20, it means that investors generally hold heavy positions, holding mid-line positions, and they are not finished until the daily KDJ sells;

Furthermore, when the 30-minute and 60-minute systems are used in the short term to sell high and buy low, it means that the dead cross with a kdj value above 80 will have a long adjustment time.

When the weekly and daily KDJ crosses 50 and falls back to around 50,

Then the dead cross or non-dead cross of KDJ reverses upward, indicating that the moving average shape is good, and the trend is long, indicating that the price washout is over.

The Kdj indicator is oversold, which means that the overall value range of K, D, and J is less than 20, which is commonly known as Kdj oversold, which is essentially a buy signal.

Investors can use the trend chart of the KDJ index to find that when the KDJ index is in the oversold zone, the conclusion is that the stock's short position is quite strong at this time and may not be sufficient in the later period. There will be little room for the stock price to continue to fall. If various forces begin to exert force, the stock may be pulled up. It is just a bullish signal and investors can choose to buy and hold at this time.

When Kdj is oversold, traders should pay attention to the following points in specific operations.

First, the oversold indicator indicates that the possibility of the stock price ending the downward trend is increasing, but it does not mean that the stock price will immediately turn from falling to rising. In fact, when the KDJ indicator sends an oversold signal, it is likely to be the time when the stock price drops the most sharply, and it is also the time when traders avoid it. If other buy signals are issued later, traders can use their risk tolerance as their own judgment.

Second, although there is an oversold signal, the stock price is in a period of rapid decline, and there may be signs of rebound, traders should try to restrain the impulse to buy and avoid buying.

Third, when the KDJ indicator line returns from the oversold area to the hovering area or a low dead cross appears, traders can consider opening a small amount of tentative positions. If the rebound or upward trend is established, such as the KDJ indicator line standing above the 50 line, you can consider adding a position.

What needs to be noted here is that although the KDJ indicator can be used to judge whether the price is rising or falling, it is still recommended to operate and analyze based on the actual situation. Such an investment will be more stable, since the buying and selling signals of an investment are sometimes incorrect. When trading, you must have a certain understanding of your risk tolerance, and it is best to be within the range you can bear. #ETH #BTC #Binance