Yin-Yang line generally refers to K-line chart, and the drawing of K-line chart in stock market and futures market contains four data, namely, opening price, highest price, lowest price and closing price. So today, Bian Xiao is here to sort out what is the main analysis of the line of Yin and Yang. Let's have a look!
The meaning of yin-yang line
K-line chart is a kind of chart source in Tokugawa shogunate era in Japan. It was used by businessmen in Japanese rice market at that time to record the market and price fluctuation of rice market, and then it was introduced into stock market and futures market because of its ingenious and unique drawing method. At present, this chart analysis method is particularly popular in China and even the whole Southeast Asia. Because the chart drawn in this way looks like candles, and these candles are black and white, it is also called yin-yang line chart. Through the K-line chart, we can completely record the daily or periodic market performance. After a period of trading, the stock price forms a special region or form on the chart, and different forms show different meanings. We can find some regular things from these morphological changes. The forms of K-line chart can be divided into reverse form, arrangement form, gap and trend line.
So, why is it called "K-line"? In fact, the word "K" in Japan is not written as "K", but as "_" (Japanese pronunciation reads kei). K-line is the pronunciation of "_ line", and the K-line chart is called "_ line", which is developed from the literal translation of the first letter "K" in western English.
Elements of yin-yang line
It is based on the opening price, the highest price, the lowest price and the closing price of each analysis period. Take the daily K-line as an example, first determine the opening price and closing price, and draw the part between them into a rectangular entity. If the closing price is higher than the opening price, the K line is called the positive line, which is represented by a hollow entity. On the contrary, it is called a negative line and is represented by a black entity or a white entity. Many softwares can use colored entities to represent negative and positive lines. In the domestic stock and futures markets, red is usually used to represent the positive line and green is used to represent the negative line. However, investors who participate in European and American stock and foreign exchange markets should pay attention to the fact that in these markets, green is usually used for the positive line and red for the negative line, which is just the opposite of domestic habits. ) Connect the highest price and the lowest price with the entity with thin lines. The line between the highest price and the entity is called the upper shadow line, and the line between the lowest price and the entity is called the lower shadow line.
Similarly, if you draw a K-line chart with one minute's price data, it is called a one-minute K-line. Draw a K-line chart with one month's data, which is called a monthly K-line chart. The drawing cycle can be flexibly selected as required, and K-lines with a cycle of 2 minutes and 3 minutes can also be seen in some professional drawing software.
K-line is a special market language, and different forms have different meanings.
What is the main analysis of yin-yang line?
First, the psychological analysis of investment
Yin-yang lines have different shapes, so it is difficult for investors to master them all, and there is no need to memorize them, because although the shapes of Yin-yang lines are different, the essence is the same. In other words, as long as we master the basic methods of morphological analysis of Yin-Yang line, we can integrate all the forms of Yin-Yang line. Stock trading is a game between long and short sides. In the process of stock trading, the most intuitive information we see is the fluctuation of stock price, which is the result of the balance between long and short sides and reflects the psychological change process of both sides. Therefore, through the appearance of stock price fluctuation, to analyze investors' investment psychology, we can grasp the changing trend of various yin and yang lines.
Second, learn to restore form.
Any Yin-Yang line, no matter how complicated, can be turned into a single Yin-Yang line with its first opening price and last closing price. If the multi-empty meaning of the restored Yin-Yang line is inconsistent with the original Yin-Yang line shape, then the Yin-Yang line needs to be confirmed; If you recover,
It is not necessary to confirm whether the shape of Yin-Yang line can be supported after Yin-Yang line. The biggest advantage of morphological reduction is to simplify the complex and difficult yin-yang line into a single yin-yang line, and the meaning of the length is clear at a glance. Therefore, if we master the method of shape reduction, investors will have a "golden finger" that can judge any shape of the Yin-Yang line, even if we have never been exposed to this shape.
Third, grasp the essence and use it flexibly.
Beginners should avoid two common mistakes when analyzing the shape of yin-yang line: first, don't be arrogant. There are many similar shapes in the form of yin and yang lines. If you don't pay attention, you will admit your mistake. In order to avoid misunderstanding, some similar figures should be compared repeatedly, and investors should really understand their differences. For example, it is a figure with three positive lines, but due to the change of the positive line entity, there will be three forms: three white soldiers, the current enemy, step by step. Their respective technical meanings are different, and the corresponding operation methods are also different. Second, I don't know, but I don't know why Many lines of yin and yang have different meanings because of their different positions. Investors must pay attention to this. Take Dayang Line as an example. Many people think that any big sunny line is a rising signal. In fact, this understanding is not comprehensive. When the stock price rises rapidly, pulling out the Dayang line often means peaking, so it is not a buying signal. Therefore, investors should carefully study the characteristics and technical meaning of the Yin-Yang line, know one and know the other better, so that there will be no mistakes when using it.
Four, comprehensive analysis of Yin and Yang lines before and after
It is difficult for a single Yin-Yang line to make a positive judgment on the stock price trend, and the role of morphological analysis of Yin-Yang lines is sometimes limited, because many Yin-Yang lines whose shapes have been restored cannot support their original meanings, so it is often necessary to make a comprehensive judgment according to the situation before and after the Yin-Yang lines. Generally speaking, the power of the market itself is difficult to change a strong trend of stock price operation, and one or two accidental factors can only make the established trend fluctuate briefly. In other words, the shape of the yin-yang line always obeys the arrangement of the yin-yang line. Even if the opposite form occasionally appears in the arrangement of Yin and Yang lines, we should consider the operation from the perspective of the arrangement of Yin and Yang lines, and we should not be limited to the short-term form of Yin and Yang lines. Therefore, in a given trend, the pointing function of the yin-yang line shape is actually very limited. This requires that the morphological analysis of the Yin-Yang line should be combined with the comprehensive analysis of the front and back Yin-Yang lines. If there are many other yin-yang lines around the yin-yang line shape to support its meaning, then the effectiveness of this yin-yang line shape is the same as other technical analysis methods, and it is not absolute and omnipotent. For example, when the stock price rises to a certain extent, the shape of the yin-yang line echoes before and after, and there are repeated reversal signals. At this time, it shows that the stock price is not far from the top and should leave decisively.
Five, combined with other analytical tools
Like other technical analysis methods, the morphological analysis of Yin-Yang line is not absolute and omnipotent. From a statistical point of view, although some forms of the Yin-Yang line are highly effective, such as the "morning star" form, with the gradual popularization of the morphological analysis method of the Yin-Yang line, investors' dependence on the morphological analysis of the Yin-Yang line will increase, which will greatly reduce the effectiveness of these forms; However, some forms are inefficient and cannot directly guide the actual investment operation. Therefore, the morphological analysis of yin-yang line needs to be combined with other technical analysis methods to play its value. In fact, using the yin-yang line to cheat, suppress capital allocation, or quietly distribute it are all means for dealers to manipulate stock prices. In this case, if investors judge their investment only by the shape of the yin-yang line, they will easily fall into the trap of the banker. In order to ensure the accuracy of judgment, investors can combine the analysis of yin-yang line with the analysis of company fundamentals, technical indicators and turnover. If the company's fundamentals, technical indicators and turnover all support its yin-yang line shape, then its effectiveness will be greatly improved.