So is kdj similar to stocastics?

Yes, the KDJ indicator is similar to the Stochastic Oscillator, both in terms of calculation and interpretation. The KDJ is derived from the Stochastic Oscillator and adds an additional line (the J line) to provide more information about the relationship between the %K and %D lines.

1. Calculation: The KDJ is calculated using the same formula for the Stochastic Oscillator, with the %K value representing the current value of the oscillator and the %D value being a moving average of the %K value. The %J line is then calculated as 3 * %K - 2 * %D.
2. Interpretation: Both indicators use the same range of values (0 to 100) and can indicate overbought and oversold conditions. Values above 70 are typically considered overbought, and values below 30 are considered oversold.
3. Trading Signals: Both indicators can generate buy and sell signals based on crossovers of the %K and %D lines. A buy signal is typically indicated by a golden cross, where the %K line crosses above the %D line, while a sell signal is suggested by a death cross, where the %K line crosses below the %D line.
4. Limitations: Both indicators are subject to false signals in volatile markets and should be used in conjunction with other indicators and market analysis.

In conclusion, the KDJ indicator is a variation of the Stochastic Oscillator that adds the J line for additional insights into the relationship between the %K and %D lines. Both indicators are useful tools for analyzing market momentum and identifying potential trading opportunities.