How To Capture Stocks "Bottom Up Point"

stay Investment In China, when people buy and sell stocks according to KDJ, they often encounter such a problem: sometimes, after KDJ gold crossover, the stock price does rise a lot. Sometimes, when KDJ gold crosses, the stock price does not rise or fall, or just up a bit, then it continues to fall, so that many investors have doubts about the validity of KDJ, and then doubt the validity of the technical analysis. Then, does the trading signal given by KDJ have any use, or under what circumstances is the cross of KDJ the most effective? After years of practice and research, the author finds that KDJ and Wave theory Combined application is the best. Today, let's talk about how to catch up with the bottom of the three wave by KDJ.

The first is to set the technical parameters, set the weekly moving average line parameters to 5, 13, 21, set the KDJ to 5, set the monthly moving average line parameters to 3, 6, 12, and set the KDJ parameter of the monthly line to 6.

After adjusting the above parameters, we set the stock selection conditions. What is worth noting is that we studied the weekly K line and KDJ.

Month K line, rather than the Japanese K-line, this effect is better. If a stock meets the following conditions in the course of a continuous decline, it shows that the stock's decline has been exhausted, followed by a wave of very ideal rising prices. These conditions are:

First, the decline of share prices has completed the three wave process of "decline - rebound - down", and created a new low when the third wave fell.

Two, in the third wave decline, stock prices have gradually shrunk and remain at a certain level as share prices continue to fall.

The three, 5, 13 and 21 week moving average lines are in short order, or the 3, 6 and December mobile average lines are in short order.

Four. On the basis of above, KDJ Golden crossover occurs and crossover takes place on the Zhou Yang line (or the moon line).

In Qianlong analysis software, there are many stocks that meet the above four conditions, resulting in big quotations, such as the stock market of the Shanghai Stock Exchange (600848). Its weekly line met the above requirements in March 5, 1999, followed by a sharp rise in stock prices; Baoshan, Yunnan (600883) its weekly line met the above conditions in January 29, 1999, and the stock price also rose sharply. Shenzhen Shenzhen Konka (0016), whose monthly line met the above conditions in January 29, 1999, followed by a 98% rise in stock price. Shen Hongji (0040), whose monthly line met the above conditions in April 30, 1999, followed by a 230% increase in share price.

Finally, it needs to be explained that when deciding whether to use stocks on weekly or monthly lines, the basis is to see which kind of K-line waves are clearer. If the wave shape of Zhou Ke line is clearer, use the weekly line, otherwise use the monthly line.

In addition, in the number of waves, do not have to adhere to the constraints of wave theory, as long as the weekly track or monthly line fall track basically in line with the three wave form, it is not necessary to overelaborate the small fluctuations, so that "small because of the loss."