#learntrade

#monaem

Below KDJ, OBV, WR, StochRSI — I am explaining the functions of these indicators and how they are useful in trading, in simple language:



1. KDJ (Stochastic Oscillator)



  • Function: Helps to understand the momentum and direction of the trend.


  • How to see:


    • K, D, J three lines.


    • When K and D are above 80, it's overbought (overbuying), and when below 20, it's oversold (over-selling).


    • When K, D, J cross (especially if K crosses D from above), it's a buy signal.



2. OBV (On Balance Volume)



  • Function: Analyzes the relationship between price changes and volume.


  • How to see:


    • If OBV increases, meaning more people are buying, the price is likely to rise.


    • If it decreases, selling is increasing, and the price may drop.



3. WR (Williams %R)



  • Function: Indicates whether the market is overbought or oversold.


  • How to see:


    • 0 to -20: Overbought (price is high, may drop)


    • -80 to -100: Oversold (price is low, may rise)



4. StochRSI (Stochastic RSI)



  • Function: Similar to RSI, but more sensitive—captures quick changes.


  • How to see:


    • Above 80: Overbought


    • Below 20: Oversold


    • Helps in making quick buy/sell decisions.



In summary:



  • KDJ: Trend/momentum and buy-sell signals


  • OBV: Understanding strength through volume


  • WR: Understanding overbought/oversold


  • StochRSI: Highly sensitive signals for quick buy/sell