The KDJ indicator: my personal view

The KDJ, what a controversial tool! I've been using it for years and I have mixed feelings. It's like that buddy who sometimes gives you brilliant advice and other times leads you to disaster.

The three lines that make it up ( K, D, and J ) supposedly show us the way, but do they really work? The J line is especially volatile - too jittery for my taste! It jumps up and down as if it has a mind of its own.

When I trade with KDJ, I mainly focus on:

• Extreme zones: If the J rises above 80, the market is possibly overbought. Sometimes I take the opportunity to sell, although I've seen assets continue to rise for weeks in this zone.

• When it goes below 20, it is supposedly oversold. I have entered many times here and sometimes it has gone horribly for me because the price kept falling.

• The crosses between K and D can be useful, but they also constantly give false signals. They have made me lose money more than once.

Honestly, I don't solely rely on this indicator. The crypto markets are too manipulated for a simple technical indicator to save you.

I use it combined with volume and pattern analysis. And from personal experience, in sideways markets is when it has worked best for me, not in strong trends where it tends to give contradictory signals.

Does the KDJ work? Yes, but with caution and without fanaticism. At the end of the day, no indicator will give you the magic formula in these unpredictable markets.