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    The Combination of KDJ Curve and Stock Price Curve

    1. When the KDJ curve and the stock price curve rise synchronously from a low level (both KDJ values are below 50), it indicates that the stock price trend is good in the medium and long term, and the stock price is expected to continue to rise in the short term. Investors should continue to hold shares or buy dips. 2. When the KDJ curve and the stock price curve fall synchronously from a high level (both KDJ values are above 50), it indicates that the stock price will continue to decline in the short term. Investors should continue to wait and see or sell on highs.

    3. When the KDJ curve falls from a high level, it rises again after a period of strong consolidation and reaches a new high, while the stock price curve also rises again after a strong consolidation at a high level, indicating that the upward momentum of the stock price is still strong, and investors can continue to hold shares to rise.

    4. When the KDJ curve falls from a high level, after a period of consolidation, it rises again, but when it reaches the previous high point, it turns downward and fails to reach a new high, while the stock price curve is still rising slowly and reaching a new high. The KDJ curve and the stock price curve form opposite trends at the high level, which may mean that the momentum of the stock price rise begins to weaken, and the KDJ indicator shows a top deviation. At this time, investors should be very careful. Once the stock price goes down, they should leave the market decisively and in a timely manner.

    5. When the KDJ curve is in a long-term weak decline process, it goes down again after a period of weak rebound and hits a new low, while the stock price curve also goes down again after a weak consolidation, indicating that the downward momentum of the stock price is still strong, and investors can continue to hold the currency and wait and see.

    6. When the KDJ curve rebounds from a low level to a certain high level, and then falls back again, but when the pullback stabilizes near the previous low, it fails to hit a new low, while the stock price curve is still slowly falling and hitting a new low, the KDJ curve and the stock price curve form opposite trends at the low level, which may mean that the momentum of the stock price decline begins to weaken, and the KDJ indicator shows a bottom deviation. At this time, investors should also pay close attention to the stock price trend. Once the stock price rises, they can buy in the short term and wait for the rebound to appear.

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    Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.