KDJ Indicator for MetaTrader 4 Download - Free - [TradingFinder]

The KDJ indicator is an advanced and optimized version of the Stochastic Oscillator. Adding the J line to the K and D lines provides a more accurate analysis of price movements.

The main purpose of this indicator is to identify overbought and oversold conditions and determine price reversal points, enabling traders to easily recognize entry and exit points.

KDJ Indicator Specifications

Bullish Trend in the Indicator

The price chart of the GBP/JPY currency pair in a 4-hour timeframe is shown. When the J line (green) crosses below the K and D lines, it indicates oversold conditions in the market.

This scenario may suggest a potential trend reversal from bearish to bullish. Traders can use the KDJ indicator and confirmation signals from the price chart to enter a Buy trade.

Bearish Trend in the Indicator

In the Ethereum (ETH) cryptocurrency chart on a 1-hour timeframe, the KDJ indicator clearly shows the market's trend change from bullish to bearish as the J line breaks above the K and D lines.

KDJ Indicator Settings

• Chart Theme: Display chart background;
• Period: Indicator calculation period (default value: 9);
• Factor1: Smoothing factor 1 for the lines (default value: 0.666666);
• Factor2: Smoothing factor 2 for the lines (default value: 0.3333333).

Conclusion

The KDJ indicator, as an advanced version of the Stochastic Oscillator, is one of the Trading Assist Indicators in MetaTrader 4 used for identifying overbought and oversold conditions as well as trend reversal points.

On the MetaTrader 4 platform, traders can enhance their trading strategies by precisely adjusting the timeframes and combining this indicator with other tools, such as moving averages or support and resistance levels.