Ultimate Winrate KDJ Strategy by reset parameter!(best tutorial)You've ever had this happen?
Bought a stock at rock bottom, and it starts to rise a bit, and then the J line turns down on the KDJ indicator, telling you to sell. So, you sell, but then it quickly shoots up, leaving you pretty blue. like you missed out on a fortune. Was the KDJ indicator down?
Nope
Hold tight, cause we're about to see a miracle. By just tweaking a bit the KDJ indicator's parameters, you can nail those short-term highs and be on your way to the success.
So, how do you find the right KDJ indicator parameters?
Stick around, and I'll spill the beans!
First off, why do we need to optimize this lil' parameter?
Well, every stock moves differently cause the folks trading it are different. So, a one-size-fits-all KDJ indicator won’t always work well on every stock at every stage. To up our chances, we gotta tweak those parameters to find the best fit for our stock.
Now, onto the second question: how do you find the right ones?
Let’s go back to the Tesla stock chart.
After changing the KDJ indicator parameters to 74, the sell point lines up perfectly with the peak.
Why 74?
Well, from point A to point B, there’s exactly 74 candles. Why use the number of candles between those two points as the KDJ parameter?
Here’s the crux of it.
The KDJ indicator is a momentum oscillator, calculating the close price at latest candle with the highest and lowest prices of the previous nine candles since the default KDJ parameter is 9.
so If the price breaks above the highest price of those nine candles, it will be constantly giving false sell signals.
So, we need to set the KDJ parameter to the number of candles from the previous high to the low. This way, the highest price and lowest price are not broken.
Then, the KDJ works accurately.
Still lost? Let’s look at another example. Here’s an Apple stock chart.
With the default parameter of 9, we bought after the golden cross, but few days later, it prompt to sell signal, and then the price soared. Feeling furious yet?
But if we set the KDJ parameter to 95, we’d have sold right near the top, securing a nice profit!
Why 95?
Same method: from the highest point A to the lowest point B, there’s 95 candles.
Got it? Ain’t it something?
Check your stocks with this method. Got questions? Leave a comment, and I’ll get back to ya ASAP! Today we focused on using KDJ to find sell points. It’s just as magical for buy points, which I’ll cover in future videos.
So, please follow me and hit that boost bell so you don’t miss out!
