KDJ Forex Signals Indicator For MetaTrader 4
The KDJ indicator for MetaTrader 4 is derived from the Stochastic with the one difference being the addition of the J line. This implies that the KDJ indicator has a total of three lines; %K%D%J. The %J is simply put, the difference between the %K and the %D lines, which is similar to the MACD.
The difference between the %J and that of the MACD is that it is plotted as a histogram and the second being that the value are weighted and as such delivers more emphasis on the shorter term %K line.
What we now have is a line that moves quite slowly and has the knack to move beyond the range of a normal stochastic indicator.
The stochastics oscillates between the “0” and “100” signal line, while the KDJ can fluctuate outside of these range, which is one of the signals that the indicator does yield. The position of the %J in the range is one of the most common signals of the KDJ indicator.
If the %J line is between the 20 and 80 region, we say the market is neutral, if the %J line is below the 20 signal line, price is said to be bearish or oversold and if the %J line is above the 80 signal line, price is said to be bullish or overbought. Price is said to be very bullish or bearish if the %J line is above 100 or below 0 respectively.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (nPeriod, factor_1, factor_2), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month