K-line theory originated in Japan and is the oldest technical analysis method. In 1750, the Japanese began to use candlesticks to analyze rice futures. K-line has the characteristics of image thinking that Eastern people are good at. It is not as quantitative as the technical indicators obtained by Western deduction method. Therefore, subjective consciousness still prevails in application. Faced with all kinds of K-line combinations, beginners can't help but feel a little embarrassed. In fact, concentration is the essence. Just like Bruce Lee's moves from complex to simple to defeat the enemy with one move, the author also summarized the vast K-line method into three simple moves. , that is, first look at Yin and Yang, secondly look at the physical size, and thirdly look at the length of the shadow line.

1. Look at Yin and Yang

Yin and Yang represent the trend direction, the Yang line indicates that it will continue to rise, and the Yin line indicates that it will continue to fall. Take the Yang line as an example. After a period of long and short struggle, the closing price is higher than the opening, indicating that the bulls have the upper hand. According to Newton's mechanical theorem, the price will still run in the original direction and speed without external force, so the Yang line indicates the next stage. It will continue to rise, and at least it can ensure that it can surge upward in the early stages of the next stage. Therefore, the positive line often indicates continued rise, which is also very consistent with one of the three major assumptions in technical analysis: stock prices fluctuate along the trend, and this kind of following the trend is also the core idea of ??technical analysis. In the same way, the negative line can continue to fall.

2. Look at the size of the entity

The size of the entity represents the internal motivation. The larger the entity, the more obvious the upward or downward trend, and vice versa. Taking the Yang line as an example, its real body is the part where the closing price is higher than the opening. The larger the real body of the Yang line, the more powerful it is to rise. Just like the physical principle of an object with greater mass and faster speed, the greater its inertial impulse. , the larger the real body of the Yang line is, the greater its internal rising power will be, and its rising power will be greater than that of the Yang line with a small real body. In the same way, the larger the Yinxian entity is, the stronger the downward momentum will be.

3. Look at the length of the shadow line

The shadow line represents a turning signal. The longer the shadow line in one direction, the less conducive it is to the stock price moving in that direction, that is, the longer the upper shadow line. , the more unfavorable it is for the stock price to rise, the longer the lower shadow line is, the less conducive it is for the stock price to fall. Take the upper shadow line as an example. After a period of long-short struggle, the bulls were finally defeated late in the day. Once bitten by a snake, they will be afraid of ropes for ten years. No matter whether the K line is Yin or Yang, the upper shadow line has been It constitutes the upper resistance in the next stage, and the probability of downward adjustment of stock price is high. In the same way, the lower shadow line indicates that the probability of the stock price attacking upward is high.

Complete graphic tutorial:/main/viewthread.php?tid=27099