First, the important characteristics of the dragon's rise
(1) After a long-term decline or adjustment, the 5-day, 10, 20-day and 60-day moving averages keep approaching and sticking together, generally forming a horizontal trend, that is, the dragon body part.
(2) The volume of the dragon body is gradually enlarged, which is where the energy required for the dragon to raise its head is gathered.
(3) When the 5-day, 10, 20-day, and 60-day moving averages are bonded together, only the positive line above the median runs through the four moving averages at the same time (that is, the breakthrough) is effective. The positive line above the medium level is the positive line with an increase of at least 3%.
(4) The dragon needs huge energy to raise its head, otherwise it can't show the power of the dragon to take off. So there must be a huge turnover under the tap, and it is gradually increasing.
When the dragon looks up, it will fall back slightly. When it falls near the 20-day moving average and begins to release the positive line, the dragon will jump into the sky as soon as it looks up.
Second, the stock K line
K-line chart has many other names, such as candle chart, daily line, yin-yang line and so on. The K-line, which we often say, was originally used to calculate the daily rise and fall of rice prices. Later, the stock market, futures market, options market and other securities markets all had its place.
Shaped like a column, it can be divided into shadow lines and entities, which we call K-line. The hatching part above the entity is called the upper hatching and the lower hatching. Entities are divided into positive and negative lines.
Shaded lines represent the highest and lowest prices of the day's transactions, and entities represent the opening and closing prices of the day. Among them, red, white columns and black box hollowing are commonly used methods to represent the positive line, while the negative line is represented by green, black or blue solid columns.
To sum up, the definition of Dragon Head Stock: the first daily limit or Dayang line was closed at the bottom recently. In the next few trading days, the K-line showed a small yin and a small yang, while Zhongyang showed a step-by-step growth, and the stock price continued to rise. In the later period, a big sun appeared, and even a wave of main rising waves appeared, which was called the dragon rising.