Forex technical indicator KDJ. Traders inevitably need to use analytical tools when conducting foreign exchange transactions, and foreign exchange technical indicators are the most used analytical tools for foreign exchange traders. There are many types of foreign exchange technical indicators, each of which has different functions and different usage scenarios. Today, I will introduce KDJ, a foreign exchange technical indicator.

Forex technical indicators KDJ, also known as stochastic indicators, is one of the technical indicators widely used by foreign exchange traders. The KDJ indicator uses the principles of statistics to form a law of market data according to certain statistical methods, and then helps traders to analyze. The research cycle of the KDJ indicator generally does not exceed 9 days, which means that the KDJ indicator is more suitable for short- and medium-term traders.

The KDJ indicator is calculated based on the three basic data of the highest price, lowest price and closing price of the market, and the three values ​​of K, D, and J are obtained, and then multiple points are connected on the coordinates to form a completed price fluctuation The trend is reflected on the chart. Traders can analyze market changes and place orders based on the price fluctuation trend on the chart. This is the formation and function of the foreign exchange technical indicator KDJ.

The KDJ indicator is relatively sensitive and can quickly reflect the trend of market price fluctuations. It is a better technical indicator for medium and short-term trend wave analysis. Next, let’s talk about the signal judgment of the KDJ indicator: In an upward trend, if the K value in the KDJ indicator is greater than the D value, then when the K line breaks through the D line, it is indicated as a buy signal. In a downtrend, if the K value in the KDJ indicator is less than the D value, when the K line falls below the D line, it is indicated as a sell signal.

Regarding the foreign exchange technical indicator KDJ, I will introduce it here. To sum up, the KDJ indicator is a foreign exchange technical indicator suitable for short- and medium-term traders, which can more intuitively reflect the trend of market price fluctuations.