There are many different indicators, of course, different indicators need to understand the meaning and application, so what is the use of the stock pagoda line? Today, Bian Xiao compiled some knowledge about the usage of the stock pagoda line for everyone. Let's have a look!

Use of stock pagoda line

It is understood that the Baota Line indicator believes in the investment philosophy of "don't talk about the top of the rise" and "don't talk about the bottom of the decline". It tells investors not to deliberately predict the position of stock price highs or lows, but to wait until the highs or lows appear before making corresponding selling or buying decisions. After the Baota line turns red, the market outlook often has the opportunity to continue a rising market, which is regarded as a buying signal. After the Baota line turns green, the market outlook usually continues to decline for a period of time, which is regarded as a selling signal. When the market is in the consolidation stage, it tends to turn red or green slightly, which can be ignored.

The tactical formula of Baota Line is that the rear flat bottom is higher than the front flat bottom, the rear flat bottom is lower than the front flat bottom, the rear flat top is higher than the front flat top, and the rear flat top is lower than the front flat top. In the formula, we can notice that many are flat-topped and flat-bottomed. These two terms actually represent the top and bottom of the stock market. In this regard, the formula is simply that the front bottom is higher than the rear bottom, the rear bottom is lower than the front bottom, the rear top is higher than the front top, and the rear top is lower than the front top.

How does the stock software find the pagoda line?

You can generally see the Baota line in the technical platform of the stock K-line chart. We can open the stock market chart, and then enter 36 to reach the stock K-line interface. Then we can see that there is an indicator platform at the bottom. Click to enter, we can see the input box, enter the tower, and then check the installation. After this operation, we can see the pagoda line.

In fact, the Baota line in the stock market is not a particularly popular indicator, but it is a relatively small indicator in application. This kind of medium-and long-term technical analysis tool, which is similar to K-line and bitmap and focuses on stock price analysis, is a graphical indicator that uses bars (or virtual entities) of different colors to distinguish the rise and fall of stock prices.

Baota line and k line

Cooperation between Baota Line and K Line

1. When the stock price is sideways at the bottom for a long time, a long entity suddenly breaks through the Dayang line. If there is a long upward white bar on the Baota line, it means that the stock price rise has begun to be established, and investors can buy stocks in time.

2. When the stock price rises in the medium and long term, when the K-line of the stock price shows an upward trend of mutual alternation of small yin and big yang, as long as the Baota line keeps the state of white line, it means that the stock price is rising strongly, and investors should insist on holding shares all the way.

3. When the K-line of the stock price shows a downward trend of alternating big yin and small yang in the medium and long-term decline, as long as the Baota line has maintained the state of Hei Bang line, it means that the stock price has been continuously falling, and investors should resolutely wait and see all the way. This and the above points are extremely accurate in judging the stock price trend.

4. When the stock price rises sharply after a period of time, if there is a long downward negative line on the K-line of the stock price and a long downward Hei Bang line on the Baota line, it means that the stock price decline has begun, and investors should sell the stock in time.

Comparison between Baota Line and K Line

1 and K-line have four elements: high, open, low and close, and Baota Line only pays attention to the closing price.

2.k line is divided into two parts: entity and shadow line. There are only two red and blue columns on the Baota Line, but they can be combined.

3. Baota line tracks the trend better than K line, especially for short-term operation. Usage of Baota Line The general criteria for judging the tower index of Baota Line mainly focus on analyzing the state and transformation of black-and-white bar line of Baota Line, and the cooperation between Baota Line and stock price K line.

We can use the Baota line indicator to analyze the long-term trend of stock assets, so as to choose "call option" or "put option" for assets in long-term options. The characteristics and drawing of Baota line are similar to point diagram. Instead of recording the stock price change process in each cycle, it is recorded when the stock price reaches a new high or a new low. This is different from the K-line chart, because the Baota line on the technical analysis software of the stock market is automatically generated by the computer. So investors don't need to draw them themselves. Here, they are familiar with its indicators mainly by understanding the calculation process of Baota Line.