Crypto Academy Season 3 | Intermediate Course: Crypto Assets and the Random Index (KDJ) by @g0h4mroot by the cryptoprofesor @asaj

The random index or KDJ is an oscillator-type indicator that has been in the market for a short time, it is created and thought under stochastic parameters to be very similar to it, these 3 lines facilitate the study of an asset when analyzing the
market technically and helps us monitor market trends, establish entry and exit positions, it is mainly used for long periods of time and it is perfect for knowing when there is overbought and oversold.

The calculation of the KDJ oscillator is a bit complex, in the same way I will try to calculate it in the best way.
for this we use the following equation:

N day RSV = (CN - LN) = (hn - LN) x 100

cn is equal to the daily closing price; In the L it is the lowest price; hn is the highest price for date N.

for K and D:

K = 2/3 x k the day before + 1/3 x RSV of the day

D = 2/3 x d the day before + 1/3 x k the day before

If we do not have the K-D values of the previous day, we substitute them for 50.

J value = 3 * K - 2 * D

Using the ETC values we are going to calculate the KDJ.

• the closing value of the previous day was: $ 70,047
• the previous highest value was $ 70,704
• the lowest value was $ 66,271

we proceed to calculate our KDJ.

Like any indicator, it is not 100% reliable and this particular tool is rumored to give a lot of false signals in short periods and sometimes shows that the market is lateralizing when it is not, as each tool should not be used individually to get good results. results. . results. . be combined with other indicators.

This indicator can be programmed in a similar way to the RSI which is:

for the overbought line it can be configured between the values of 70 and 80% and for the oversold line between the values of 20 and 30%.

then we must follow the following steps to add the indicator to the operations view.

• step 1
  log in to tradingview

• Step 2
  go to graphics

• step 3
  click on indicators and strategies.

• Step 4
  search defaults

• step 5
  in the search box type KDJ

• step 6
  select the indicate KDJ and voila, we have already added our indicator.

The ADX indicator tells us what strength a trend has, this indicator does not determine a trend, that is, it does not show if the market is going to enter a downward or upward trend, it only shows us the strength of the market at that time, in In summary, if there are many sell orders, the indicator shows a downward force, but the values will be the same as if the trend was bullish.

the ATR indicator indicates market movements, a possible impulse in a trend and a consolidation of prices.

The KDJ allows us to follow trends, deduct market entries and exits, and oversold and overbought.

• I will use the ETH / USDT pair to buy $ 33 worth of ETH because the KDJ indicator converged indicating a reversal of the uptrend.

buy ETH

• To sell I have used the STEEM / BTC pair, although the market is lateralizing the KDJ lines indicate that they have converged indicating a downward trend change, so I will sell 100steem.

sell STEEM

Trading is a wonderful world, entering it requires a lot of courage, but with the help of these magnificent oscillators we avoid headaches.

In this class we learned how to use the KDJ indicator and how to calculate it using its equation.
We use this indicator to buy ETH and sell STEEM.

We show step by step how to add the indicator to the trading view.

@asaj