KDJ + MACD

KDJ + MACD Indicator
Overview
A combined technical analysis tool that integrates two popular indicators:

KDJ Indicator: A stochastic oscillator variant that measures momentum and overbought/oversold conditions

MACD Indicator: A trend-following momentum indicator that shows the relationship between two moving averages

Key Components
KDJ Section
K Line (Blue): Fast stochastic line

D Line (Orange): Slow stochastic line (signal line)

J Line (Purple): Extra momentum line (3K - 2D)

Levels:

80+ = Overbought zone

20- = Oversold zone

50 = Neutral midpoint

MACD Section
MACD Line (Blue): Difference between 12-period and 26-period EMAs

Signal Line (Orange): 9-period EMA of MACD line

Histogram (Green/Red): Visual difference between MACD and Signal lines

Trading Signals
KDJ Buy: K crosses above D when below 30 (oversold)

KDJ Sell: K crosses below D when above 70 (overbought)

MACD Buy: MACD line crosses above Signal line

MACD Sell: MACD line crosses below Signal line

Use Cases
Trend Confirmation: Use MACD for trend direction and KDJ for entry timing

Divergence Detection: Spot price/indicator divergences for reversals

Overbought/Oversold: Identify extreme market conditions

Momentum Analysis: Gauge the strength of price movements

Best For
Swing traders

Medium-term timeframes (4H, Daily)

Confirming trend changes

Filtering trade signals

Note: Works best when both indicators align, reducing false signals.