K is a columnar line, which consists of a shadow line and a solid. The hatched part above the entity is called the upper hatched line and the lower hatched line. The entity represents the opening price and closing price of a day, the top vertex of the upper shadow line represents the highest price of a day, and the bottom vertex of the lower shadow line represents the lowest price of a day. According to the relationship between opening price and closing price, K-line can be divided into two types: the positive line when closing price is higher than opening price and the negative line when closing price is lower than opening price.
A K-line records the daily price changes of a stock. By arranging the daily K-line in chronological order, we can reflect the daily price changes of the stock since its listing, which is called the daily K-line chart.
Because of the different values of the four prices (opening price, closing price, highest price and lowest price), other forms of K-line will also be generated. To sum up, there are the following points:
1, bald positive line and bald negative line. This is a K-line without hatching. When the closing price or opening price is exactly equal to the highest price, it will appear.
2. Barefoot Yang line and barefoot Yin line. This is a K-line without hatching. When the opening price or closing price is exactly equal to the lowest price, this K line will appear.
3. Bare head and barefoot men's and women's lines. This K-line has neither upper shadow line nor lower shadow line. When the closing price and the opening price are equal to one of the highest price and the lowest price respectively, this K-line will appear.
4. Cross. When the closing price is the same as the opening price, this K-line will appear, which is characterized by no entity.
5. T-shaped and inverted T-shaped. When the closing price, the opening price and the highest price are equal, there will be a T-shaped K-line chart; When the closing price, opening price and lowest price are equal, there will be an inverted T-shaped K-line chart. They have no entity, no upper or lower shadow lines.
6. In a word. When the closing price, opening price, highest price and lowest price are equal, this K-line chart will appear. When there is a price limit system, a stock will be sealed on the price limit as soon as it opens, and this K-line will appear as soon as it doesn't open for a day. Like cross K-line and T-shaped K-line, straight K-line has no entity.
No matter how complicated the K-line combination is, the way to consider the problem is the same, and both sides are judged by the position of the last K-line relative to the previous K-line. The combination with more K lines is more reliable than the combination with fewer K lines. Whether it is a K-line, two K-lines, three K-lines, or even more K-lines, they are all descriptions of the struggle between long and short sides, and the conclusion drawn by combining them is relative, not absolute. For stock investors, the conclusion is just a suggestion.
In application, it is sometimes found that different kinds of combinations will lead to different conclusions. Sometimes a combination is used to draw the conclusion that it will fall tomorrow, but the stock price will rise instead of falling the next day. At this time, an important principle is to use the conclusion of multiple K-line combinations as much as possible, and then add a new K-line for analysis and judgment.
Generally speaking, the results obtained by the combination of multiple K-lines are not easy to contradict the facts.