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KDJ indicator
I'm a big fan of the stochastic indicator for timing entry into trades.
I use the %K line crossing back up from an oversold position to enter a long trade, and vice-versa for a short position.
Has anyone had any experience with the KDJ? If so how does the J line change the decisions you make?
The anti by Linda Raschke:
Here are the rules for the setup:
1. Use a seven-period %K stochastic (the "fast" line). If your program allows for
an adjustment of the smoothing of this parameter, default to four.
2. Use a 10-period %D stochastic (the "slow" line).
BUY SETUP (SELLS ARE REVERSED)
1. The slow line (%D, the dotted line in the examples on the following pages)
has established a definite upward-trend.
2. The fast line (%K, the solid line) has begun to rise along with the slow line. A
consolidation or retracement in price causes the fast line to pull towards the
slow line.
3. Enter when the price action causes the fast line to turn up once again in the
direction of the slow line (forming a hook).
TRIGGER
