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KDJ Max-Distance (K-D vs K-J)

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This indicator measures the maximum divergence between K and its related lines (D or J) in the KDJ stochastic system.

KEY CONCEPT:
- Calculates two distances: |K-D| and |K-J|
- Outputs whichever distance is larger
- Shows which component (D or J) is most diverged from K at any given time

CALCULATION:
1. Standard KDJ: K (fast), D (K smoothed), J (3K - 2D)
2. Distance K-D: momentum between fast and slow lines
3. Distance K-J: captures extreme divergence
4. Output: max(|K-D|, |K-J|) or signed version

INTERPRETATION:
• High positive values: K strongly above both D and J (strong upward momentum)
• High negative values: K strongly below both D and J (strong downward momentum)
• Near zero: K aligned with D/J (consolidation or reversal zone)
• Background color shows which is dominant: Teal=K-D, Orange=K-J

USE CASES:
- Identify extreme momentum conditions
- Spot divergence exhaustion
- Confirm trend strength
- Filter ranging vs trending markets

SETTINGS:
- Signed mode: preserves direction (positive/negative)
- Absolute mode: shows pure distance magnitude
- Adjustable guide levels for visual reference

Penafian

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