KDJ Death Cross

The KDJ Death Cross is one of the commonly used technical analysis patterns in quantitative trading, used to identify potential downward trends in the market.

Calculation Principle

The KDJ Death Cross is determined by the following conditions:

  1. The K line crosses below the D line from above
  2. The crossover occurs in the overbought region (usually above 80)
  3. At the crossover, both the K and D lines have negative slopes

Parameter Description

  • Input parameters:
    • KDJ indicator data
  • Parameters:
    • direction: direction parameter
    • waterline: waterline parameter

Usage Suggestions

  1. Use in combination with other technical indicators
  2. Pay attention to the overall market trend
  3. Monitor trading volume
  4. Set reasonable stop-loss levels
  5. Watch out for false breakouts
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