Kdj Indicator Wiki | Meaning | Formula | Settings | line | Golden Cross | How to use & more

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Kdj Indicator Wiki | Meaning | Formula | Settings | line | Golden Cross | How to use & more: Hello…how are you?

Well, today in this article I am going to talk about one of the most popular trading indicators i.e Kdj Indicator.

Kdj Indicator is really powerful and can give you a good profit.

So, keep reading ahead Kdj Indicator Wiki | Meaning | Formula | Settings | line | Golden Cross | How to use & more

What is Kdj Indicator?

Kdj indicator is one of the most effective trading indicators that was designed to make our trading efforts more effective & easier.

Kdj indicator is a technical indicator used to analyse and predict the change in stock trends and price patterns in traded assets.

This indicator works exactly the same as RSI & Stochastic with overbought and oversold levels.

This indicator has an extra J Line which measures the convergence and divergence of k% and d%.

The moments of crossing k% and d% are the moments of buying and selling.

The line J represents the divergence of the %d value from the k% value.

How does the Kdj Indicator works?

Here, to illustrate the Kdj indicator. I am going to use IQ option.

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You can sign up via the form given below.

 

You can sign up here try…

Once you click the link given above you will land on the IQ Option homepage.

Now, enter your email, password & hit try now.

Once you have signed up you will land on the IQ Option dashboard.

Click on the chart and select Japanese candlestick from the menu.

Now, click on the indicator button and select Kdj from the menu with default settings.

That’s it!! The basic setup is over.

How to Trade with Kdj Indicator?

Trading with Kdj indicator is very easy. you just need to remember the golden rule of the Kdj indicator.

The golden rule of Kdj indicators says:

When the three lines converge above the overbought level with the blue line above the yellow line and the yellow line above the purple line.

Here, we should for a Sell trade.

Similarly, When the three lines converge below the oversold level with blue above the yellow line and the yellow line above the purple line.

Here, we should go for a buy trade.

Let’s check few examples:

Given above is 1 – hour chart and as you can see that three lines converge above the overbought level and the blue is above the yellow and is above the purple line.

So, here we should go for a sell trade.

How reliable is Kdj indicator?

Kdj is one of the most trusted indicators. However, just like any other indicator, it can give you some false signals.

Therefore, I will highly suggest you to use support and resistance to confirm your trade.

Let’s check few examples.

Given above is a 2-hour chart and can we clearly see that the three lines converge above the overbought level with the blue line above the yellow line and the yellow line above the purple line plus the candle is near the resistance level so, here, we can take a sell trade.

Similarly, given above is a 1-hour chart and can we clearly see that the three lines converge below the oversold level with the blue line is above the yellow line and the yellow line above the purple line plus the candle is near the support level so, here, we can take a buy trade.

Final Point:

Kdj is one of the most effective trading indicators that was designed to make our trading efforts easier.

Trading with Kdj Indicator is very easy. You just need to remember the golden rule of Kdj.

The golden rule of Kdj indicators says:

When the three lines converge above the overbought level with the blue line above the yellow line and the yellow line above the purple line.

Here, we should for a Sell trade.

Similarly, When the three lines converge below the oversold level with blue above the yellow line and the yellow line above the purple line.

Here, we should go for a buy trade.

For best results use Support and Resistance to confirm your trade.

So, this is the end of this article. I hope you have found this article helpful.

This article was all about Kdj Indicator Wiki, Kdj Indicator Meaning, Kdj Indicator Formula, Kdj Indicator Settings, Kdj Indicator line, Kdj Indicator Golden Cross,  How to use Kdj Indicator? & more

 

 

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