The Kdjperiod interval defines the MaxHigh, which is also the highest high and MinLow, which is also the lowest low.
This implies that if the MinLow is subtracted from the MaxHigh, what we’ll get is the height of the specified KdjPeriod interval.
Subsequently, we determine the distance between the Close price of the current bar and MinLow as a percentage of the height of the nominated KdjPeriod interval.
This is the base RSV line.
We get a smoothed K line by averaging the base RSV line with the M1 period.
We get a smoothed D line by averaging the smoothed K line with the M2 period.
The histograms of the KDJ is obtained from the difference between the K line and the D line.
The USD/JPY M30 chart below displays the KDJ Indicator Metatrader 5 forex indicator in action
Basic Trading Signals
Buy Signal: Go long when the medium slate blue histogram of the KDJ Indicator breaks above the zero level.
Sell Signal: Go short when the medium slate blue histogram of the KDJ Indicator breaks below the zero level.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the medium slate blue histogram of the KDJ Indicator aligns below the zero level.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the medium slate blue histogram of the KDJ Indicator surge above the zero level.
Tip: The KDJ Indicator is a suitable Metatrader 5 technical tool that scalpers and intraday traders can always take advantage of.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (M1, M2, KdjPeriod), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the KDJ Indicator.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)