What is random?

Hello, stochastics, a common technical analysis tool in futures and stock markets. It is composed of two lines% k and% d on the chart, so it is also called KD line for short. Stochastics integrated some advantages of momentum concept, strength index and moving average in his design. In the calculation process, he mainly studied the relationship between the price and the closing price, that is, by calculating the true amplitude of price fluctuations such as the highest price, the lowest price and the closing price on the same day or in recent days, to reflect the strong and weak trend of prices and the phenomenon of overbought and oversold. Before the market turns because of the upward trend, most of them will close at a high price every day, and when they fall, the closing price will often close at a low level. Stochastics also fully considers the calculation of the random amplitude and short-term fluctuations of price fluctuations in its design, making its short-term market measurement function more accurate and effective than the moving average, and more sensitive than the power index when forecasting short-term overbought and oversold markets. Therefore, as a short-term and medium-term technology market measurement tool, randomness is quite practical and effective.

1. The calculation method is random, and any number of days can be selected as the calculation basis. For example, the five-day KD line formula is: k value = 100× [(C-L5)/(H5-L5)] d value = 100× (H3/L3) formula: c is the closing price of the last day; H5 is the sum of the last three (C-L5) numbers, and L3 is. The calculated numbers are all numbers of 0- 100, and the obtained numbers are marked on the diagram. Usually, the K-line is represented by a solid line, and the D-line is represented by a dotted line.

The above is the original calculation method, and there are also improved formulas. Cancel the old K line and change the D line to K line; Three-day moving average instead of D-line.

This information does not constitute any investment advice, and investors should not use this information to replace their independent judgment or make decisions only based on this information.