What is kdj golden cross

KDJ (Koch Demonstration Jig) is a trading indicator used to identify potential trend reversals or continuations in a market. The KDJ indicator is based on the idea that the price of a security, such as a stock, tends to follow a random walk, and that the speed of price movement can be measured by the difference between the highest and lowest price in a given period.The KDJ indicator is calculated by taking the difference between the highest and lowest price of the security over a specific period, typically 3 months, and dividing this difference by a volume indicator, such as the average true range (ATR). The resulting value is then used to plot a line on a chart, which can be used to identify potential trend reversals or continuations.A KDJ golden cross occurs when the KDJ indicator crosses above its own moving average, indicating a potential bullish trend. This is a bullish signal and suggests that the price of the security may continue to rise. However, it's important to note that the KDJ golden cross is not a guarantee of a trend reversal and further analysis is required to confirm the signal.