The KDJ indicator is a combination of 3 lines: fast, medium and slow, crossing of which gives a signal to open a trade.
A buy signal is formed when the lines are crossed: the red line is above the blue one, and the blue line above the green one. A sell signal is received when crossing in the opposite order: the red line is below the blue one, the blue line is below the green one. Note that the farther apart the lines are, the stronger the signal. The calculation is based on the KD - Slow indicator. The indicator is calculated by the following formula:
The indicator view in the chart.
The indicator has the following parameters:
Period %K - setting of the %K period for the KD - Fast calculation.
Period %D - setting of the %D period for the KD - Fast calculation.
Period %D - setting of the %D period for the KD - Slow calculation.
Panel/Moving average period - selection of the indicator location in the chart:
- New panel
Line, Moving average
Show value - display of the indicator value on the price scale on the left.
Scale/Auto-scaling - if this option is on, the scale will be automatically calculated, based on the minimum and maximum indicator values, so that the indicator would fit in the chart.
Color - color setting of the indicator.
Visual type - visual setting of the indicator display in the chart:
- Up arrow
- Down arrow
- Axis label
Line style - setting of the line display style:
- Dash - dot
- Dash - dot - dot
Width - setting of the indicator line width.
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