Buying and selling principle:
1.K value crosses D value from the right to sell, and K value crosses D value from the right to buy.
2. High-end products have been cross-confirmed downward for two consecutive times. Low-end products have been cross-confirmed to rise twice in a row.
3.d value; 80% overbought; J> 100% overbought, J.
4. When the KD value hovers around 50% or crosses, it is meaningless.
5. stocks that are too speculative are not applicable.
6. You can observe the deviation between KD value and stock price to confirm the high and low points.
In order to understand the yin-yang line, we must first know what the K-line chart is. The so-called K-line chart is to graphically represent the opening price, closing price, highest price and lowest price of various stocks on the day, week and month.
K-line, also known as Yin-Yang line, stick line, red-black line or candle line, originated from the rice market transaction in Tokugawa shogunate era (1603 ~ 1867) in Japan, and was used to calculate the daily rise and fall of rice prices. Later, it was introduced into the analysis of stock market price trend and became an important method in stock technical analysis.
The yin-yang line cannot be completely explained as the rise and fall of stocks. The closing bald line (falling first and then rising) turned around and rebounded after the opening, closing at the highest price in the whole day, which shows that the upward momentum is great. The bald yangxian line (Dayang line) rose all day, with a strong upward momentum. If it appears in a falling market, it may be a signal that the falling market is over. The opening bald line (rising resistance type) has a strong rising force, but it is blocked, so it needs to be cautious. If it continues to rise, it may be a harbinger of decline; If it is a rebound in the decline, the bulls will still fall if they are not strong enough. The market of xiaoyang line (weak type) is quite chaotic, and it is difficult to have a clear estimate of the rise and fall. If it appears after a strong and sustained rise, it means a high level of shock and lack of continuity, which may be a sign of decline. If it appears after a long-term decline, it shows weakness and may continue to fall. The upward trend of Shangying Yangxian market is weakened, which is obviously blocked at a higher price, and the market outlook may fall. The bald yinxian (big yinxian) has been falling all day, the market outlook is weak, and the market is extremely bad, so it has to fall. This situation often appears in the short market. If there are several big yinxian lines in succession, there may be a rebound. The upper shadow line (rising and then falling) rises first and then falls, and the bottom support is not strong. It may be a signal that the rising market is over. Closing bald yinxian (rising first and then falling) The market rose first and then fell, the seller was strong and the market was bearish. The small yinxian (short black line) market is chaotic, and the ups and downs are difficult to estimate. If it appears after a continuous rise, it means a high level of shock, which may be a harbinger of decline. At the opening, the bald head fell (resisted falling), and the market closed after falling, showing signs of rebound. The shadow line (if you want to fall, you can't play) implies that there is strong support at the bottom, and the market outlook may tend to rise. If it appears in the rising market, it will continue to rise; If it appears in a falling market, it is likely to rebound. At the same time, the four-value market is weak and the trading volume is small, so investors wait and see. This kind of price situation appears in the deserted stock market. The cross star market is changing, which may be a signal of the stock market turning point. The big cross represents the long-short combat type, indicating that the long-short sides are evenly matched on the same day, and the stock price trend on the next day is as the shadow line, indicating that the bulls are strong and can buy; Otherwise, sell. The knot shape of the small cross should wait and see. We can't have big ups and downs, but we will continue to develop. T-shaped (win-win line) turns downward into an upward signal, and the market outlook may continue to rise. The strength of many parties is stronger than that of the empty side. It appears in the bull market and may continue to rise. It appears in a bear market and may rebound. Inverted T-shape (empty winning line) indicates that the seller is stronger than the buyer, which is a signal of strong decline. There is a bull market, which may fall; Appears in a bear market and may continue to fall.