What is k line and d line in kdj

In the KDJ indicator, the K line and D line are two of the three lines that compose the indicator, used to identify potential buy and sell signals.

1. K Line: The K line, also known as the fast line, represents the level of the closing price relative to the high-low range over a specified period. It is calculated using the formula: K = (C - L) / (H - L) * 100, where C is the closing price, L is the lowest price over a specified period, and H is the highest price over the same period. The K line is used to measure the momentum of the market and is sensitive to recent price changes.
2. D Line: The D line, also known as the slow line, is a moving average of the K line. It is calculated by smoothing the K line over a longer period, typically using a three-period simple moving average. The D line helps to filter out the noise from the K line and provides a clearer view of the trend. When the K line crosses above the D line, it is considered a buy signal, indicating potential upward momentum. Conversely, when the K line crosses below the D line, it is considered a sell signal, indicating potential downward momentum.

The KDJ Death Cross, mentioned earlier, occurs when the K line falls below the D line, indicating a potential downward trend and a bearish outlook.