K-line chart

K-line chart originally originated during the Tokugawa shogunate period in Japan, and was used as a record to analyze price adjustments in the rice market. At present, this kind of statistical analysis chart method is widely used in my country and all Southeast Asia to view the fluctuations of stock markets and futures trading. How to draw a K-line chart contains four information contents: the maximum selling price, the lowest price, when the market opens and the closing price. All K-lines focus on these four information contents, reflecting the trend and price fluctuations.

Analysis of the basic appearance of the K line

The cross line (when the opening is equal to the closing price) The cross line can be regarded as a rotation signal. If this type of K line appears_when the foreign exchange price is high , and the closing price of the next day is lower than the closing price of the day, it means that the merchant is strong, and the foreign exchange price may fall back. If this type of K line comes out, when the foreign exchange price is low, and the closing price of the next day is higher than the closing price of the day, it means that the customer If the amplitude is strong, foreign exchange prices may rise.

1 Yang K line_1 represents a strong upward trend, 2 is indispensable for high-tech stocks. The 3-turn retracement cannot exceed 35% of the positive K line.

1. -1 on the Yin K-line represents a strong decline, 2. try to be as low as possible in the new market, and 3. the retracement cannot exceed 35% of the Yin K-line.

The formation of the cross star indicates obvious market sales, direction movement or direction change. When you see a single star emerging, you should wait for the direction wisely and do not enter the market casually.

In a falling stock market, this type of K-line chart increases the chance of a shocking reversal of direction, but only if the second K-line opens as high as possible and goes strong and the closing price is higher than it can there be no doubt. If the opening of the third K line will rise above the long lower shadow line of the second K line, its upward trend will be stronger.

In an uptrend, this type of K-line chart increases the probability of a shocking reversal. However, only when the next second K line opens as low as possible and the closing price is lower than it can investors' direction be unquestioned. If the third K line can be lower than the big negative line of the second K line, his decline will be even greater. for fast.

This kind of graphic signal can turn into an obvious market change pattern no matter what the price is, whether it is high or low. The statistical analysis method of Yin and Yang lines is the same. Open low or open high and go strong. If the closing price can exceed 50% of the previous K-line, the direction of market sales can be established.

In a falling stock market, if there is a positive and negative line, a rise in the market is inevitable. In a rising stock market, if there is a yin and yang line, a falling market is inevitable.

The dark cloud cover is formed when the price rises after the bald negative line rises, and then a big negative line appears, and the big negative line causes the price to fall below 1/2 of the previous bald negative line entity. This combination often appears when the market has risen sharply for a period of time, or even hit sky-high prices, indicating a shocking reversal of the market, which will then lead to a downward trend.

After the island forms a rising market trend, a large negative line shrinks and rises, just like an island. This combination, although the closing price of the big negative line is still higher than yesterday, can already see the decline in the mentality of the market staff and the futures traders' methods of early winners, indicating that the market outlook is no longer optimistic.

The mainstay midstream composition is compared to the "dark cloud cover" composition. After the price fell out of the big negative line, there was another bald negative line, and the bald negative line caused the price to rise to about 1/2 of the previous big negative line entity. This combination often appears when the market has fallen sharply for a period of time, or even hit a record high, indicating a shocking reversal of the market, which will then lead to an upward trend.

The inclusive entities are masculine and yin, but today's long entity completely encompasses yesterday's small entity, indicating that the market outlook will develop in the direction of the long entity.

Focus on the composition. The emphasis on the composition refers to the composition of two K-lines with approximately the same entity, arranged side by side, that is, in short, the composition of double red or double black.

Understanding K-line charts is crucial for investment analysts focusing on the stock market. Together, we can fully grasp the fluctuations in the four information contents of the maximum selling price, the lowest price, when the market opens and the closing price. Therefore, it is very essential to understand K-line charts.