KDJ Indicator is based on the Stochastic Oscillator with the addition of an extra line (J).
The J line corresponds to the divergence of the %D value from the %K. The value of J can exceed [0, 100] for %K and %D lines on the chart.
Its formula is:

%K = 100 * (Close – Lowest Low [last n periods]) / (Highest High [last n periods] – Lowest Low [last n periods])
%D = Moving Average (%K)

Originally used first used in futures markets analysis, KDJ can identify reversals, and overbought or oversold levels.

Trading Signals

  • When the oscillator is above 80, it`s overbought. When it moves below 20, it`s oversold.
  • Buy when J goes below 0 when K and J are in oversold area.
  • Sell when J goes above 100 when K and J are in overbought area.



  • File: KDJ.mq4
  • Size: 3 Kb
KDJ posted by is rated 5 / 5 on 310 reviews.

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