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KDJ - CakeProfits

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KDJ Indicator
The KDJ is an enhanced version of the traditional Stochastic Oscillator, adding a third line (J) to measure momentum extremes. It uses the K and D lines from the Stochastic, with the J line calculated to amplify overbought and oversold signals.

K Line – Fast-moving measure of current momentum.

D Line – Smoothed version of K, used for signal confirmation.

J Line – Projects potential extremes by extending the distance between K and D.

How to Use:

Overbought: J above 100 may indicate price is extended.

Oversold: J below 0 may signal price is undervalued.

Crossovers: Bullish when K crosses above D, bearish when K crosses below D.

The KDJ is popular among swing and momentum traders for spotting early reversals, confirming trends, and filtering trades in ranging markets.

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