In technical analysis, the mother-child K-line often has an upper shadow line or a lower shadow line. If the mother K-line is on the rise, and the lower shadow line is long, and the child K-line is the middle shadow line, it indicates that the stock price may reverse. If the mother K-line is in a downward trend, and the upper shadow line is long, and the child K-line is the zhongyang line, it indicates that the stock price may rebound. In addition, the mother K-line may also refer to a form, that is, most of the entities of two consecutive K-lines overlap or cross, which appears less frequently in the stock price trend, but once it appears, it has high reference value.
Although the mother-child K-line is not one of the core concepts of technical analysis, it is one of the important indicators to judge the buying and selling power of the market and the degree of bullish or bearish. Parent-child K-line has a wide range of applications and can be used in various securities trading markets, such as stocks, futures, foreign exchange and other markets. In practice, investors can use the parent-child K-line to judge the market trend, determine the specific operation strategy, assist stock selection and trading, and improve the investment effect.