KDJ Technical Index In China's A-share Market Validity Check

Stock market occupying the extremely important status in the financial markets,in the major financial newspapers and magazines,we can see a large page about the content of the stock market,the rise and fall of the stock market to a certain extent,reflects the situation of our country's real economy.For the majority of stock investors,the most concern is how to obtain the income from the stock market or excess returns.Among the stock investors in China,the technical analysis method is widely used.In this case,it is of great significance to study the effectiveness of technical indicators in the a-share market and to guide China's stock investment.However,KDJ technology index is one of the most widely used technical indexes in China,so this paper selects KDJ index as the research object.The author in a lot of reading related literature both at home and abroad,study technical analysis,on the basis of theoretical knowledge,the development of technical analysis of the comb,and the research status of scholars at home and abroad are briefly introduced.Technical analysis is a kind of market behavior as the research object of the analysis method of investors through the study of market behavior,trying to find out certain regularity,expect to gain in accordance with the law of investment is higher than the market gains excess returns.Technical analysis can be divided into three categories: graphic analysis,index analysis and a variety of modern techniques.In this paper,the three major categories of technical analysis method has carried on the detailed introduction,and further explains why choose KDJ indicators as the research object,and the specific use of KDJ indicators standards and using methods are introduced.In the empirical study,the empirical study was conducted on the stock price data of the CSI 300 and the CSI 300 index from January 1,2013,solstice,December 31,2017.In the empirical part,this paper carried out four tests,which were the validity of the a-share market when the parameters of KDJ technical indexes of the change-long daily line were(9,3).When the parameter is(9,3),the KDJ index of variable length weekly line is valid in the a-share market.The effectiveness of the KDJ index in the ashare market when the parameter is(18,6);The KDJ index of variable length weekly line is valid in the a-share market when the parameter is(18,6).Through summary analysis of the test data,found that KDJ technical indicators in the above four cases are not bring excess returns for investors,so this paper argues that under the assumptions given in this paper,KDJ technical indicators in the a-share market in China is invalid.Finally,this paper summarizes the content of the article,and suggests that investors should pay more attention to the intrinsic value of the stock when investing in stocks instead of obsessively focusing on the technical analysis.