Abstract:

In this paper,the RSV (Raw Stochastic Value) of KDJ index is extracted and decomposed,using different wavelet orthogonal basis and appropriate transformation level.After the high frequency and low frequency signals being reserved,the new RSV is reconstructed.According to these data,the modified KDJ index based on wavelet analysis is obtained.With the Matlab simulation,it is certified that the new index is more directive and less misleading than traditional KDJ,and can offer more effective assistance to the behavior of investors.

Key words: wavelet analysis;KDJ index;Matlab