It should be KDJ instead of KDG. KDJ is a random indicator, represented by k: white line, d: yellow line, j: purple line.
Principle: Use the relative position of the current share price in the recent stage of the share price distribution to predict the possible trend reversal.
Algorithm: For each trading day RSV(immature random value) RSV=(Closing price - last N-day lowest price)\/(last N-day highest price - last N-day lowest price)×100 K line: M1 daily moving average of RSV D line: M2 daily moving average of K value J line: 3×D-2×K Parameter: N, M1, M2 days, generally 9, 3, 3
usage
1.D> 80, overbought; D< 20, oversold; J> 100% oversold; J< 10% oversold.
2. Line K breaks through line D upward, buying signal; Line K falls below line D, a sell signal.
3. Only when the cross between line K and line D occurs above 70 and below 30, it is effective.
4.KD index is not suitable for stocks with small issuance and inactive trading; 5.KD indicators have high accuracy for the broad market and hot large-cap stocks.