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KDJ test

KDJ test

2 responses

There no unified mathematical description of the KDJ indicator.

Some defined KDJ as:
The %J line is nothing more than the difference between the other two lines.
The J line is a measure of divergence between %D and %K.

mql5 and tradingview use formula:

%J = 3 * %D  2 * %K 

anychart

%J = %K*k + %D*d

So I created my own indicator and call it "Stochastic FKSD" very similar to anychart mathematical description
and more suitable for stock and bond trading strategy.
fksd = 0.5*fk + 0.5*sd

Here is my rough version of stock and bond trading strategy using the Stochastic FKSD indicator.

Here is performance tearsheet of slightly improved version of Stochastic FKSD (06-01-2007 - 06-09-2020).