What does the K-line chart kdj of the stock market stand for?

The Chinese name of KDJ indicator, also known as stochastic indicator, originated from the futures market and was initiated by George Ryan. Stochastics KDJ first appeared in the form of KD index, which was developed on the basis of William index. However, the KD indicator only judges the overbought and oversold phenomenon of stocks, while the KDJ indicator combines the concept of moving average speed to form a more accurate basis for buying and selling signals. In practice, K-line and D-line cooperate with J-line to form KDJ index.

In the design process, KDJ index mainly studies the relationship between the highest price, the lowest price and the closing price, and also integrates some advantages of momentum concept, power index and moving average. Therefore, it can judge the market quickly, quickly and intuitively, and is widely used in the short-term trend analysis of the stock market. It is the most commonly used technical analysis tool for futures and stock markets.