If you put the daily K-line chart on a piece of paper, you can get the daily K-line chart, and you can also draw the weekly K-line chart and the monthly K-line chart.
The following are some basic K-line forms for reference only:
1, Dayang Line (Changhong): The opening price was close to the lowest price in the whole day, and then the price rose all the way to the highest price, indicating that the buying enthusiasm in the market was high and the increase was not exhausted;
2. Big Yinxian (long black/long green): The opening price is close to the highest price in the whole day, and then the price falls all the way to the lowest price, indicating that the market has a strong downward trend, especially in the high-priced area, which is more dangerous;
3. Lower shadow line: the price once fell sharply, but supported by buying power, the price rebounded and closed at the highest price, which was a strong form;
4. Lower shadow line: After the price once fell sharply, but supported by buying power, the price rebounded upward. Although the closing price is still lower than the opening price, it can also be regarded as strong. However, it appears in the high-priced area, indicating that the price has a callback requirement, and attention should be paid to selling;
5. Upper shadow line: the price rises and falls, and the increase is blocked. Although the closing price is still higher than the opening price, there is resistance above it, which can be regarded as weak;
6. Upper shadow line: the price is blocked, the increase is blocked, the closing price is lower than the opening price, and there is resistance above, which can be regarded as weak;
7. Cross line: After the opening, the price dropped sharply, but it was supported at the low level. The buying below was proactive and finally closed near the highest price, showing strong performance. When the long shadow line appears in the low-priced area, it is often an important inversion signal;
8. Inverted crosshair: After the price skyrocketed, it encountered strong resistance at a high level and was finally forced to close the position near the opening price. Although there is a desire to attack, the market has repair requirements and is weak. When the reverse reticle appears in the high-priced area, it is often an important change signal;
9. Cross star: The buyers and sellers are evenly matched and the trend is stable; However, in a strong city, the cross star often becomes the intersection of market power transformation, and the market outlook may change;
10, a word line: the four-price k line reflects that the market transaction is light and it is difficult to have a big change in the market outlook; However, if it appears in the daily limit (down limit), it means that the power gap between buyers and sellers is too big, and the direction of the market outlook is clear, which is difficult to reverse in the short term.
Extended data:
Morphological application
How to use K-line to judge the long-term stock price changes?
Firstly, the basic types formed by connecting several K lines are introduced.
1, head and shoulder type
After the K-line gathers for a period of time, there will be three vertices or bottoms in a certain price range, but the second vertex or bottom is higher or lower than the other two vertices or bottoms. However, sometimes there may be more than three vertices or bottoms; If one or two heads (or bottoms) and left and right shoulders appear, it is called compound shoulder type (or compound head-shoulder bottom).
2. Duplex roof
Double top means that when a stock rises to a certain price rapidly, due to the selling pressure of short-term profit-taking, the trading volume expands, and the stock price falls from the peak, and then the trading volume gradually shrinks with the decline of the stock price. After the stock price stopped falling, it began to rise to the price near the previous peak, and the trading volume increased again, but it was less than the trading volume created by the previous peak.
The selling pressure on the upper gear reappeared, and the stock price fell again and fell below the neckline, forming a weakness that has been falling. The neckline is to draw a parallel line at the low point between two peaks. Because the double top breaks through the neckline after completion, it looks like the English letter "M" graphically, so the double top can also be called "M" head.
3. Double bottom
That is, the inverted state of the double top forms a "W" shape; In other words, the stock price rebounded when it fell to a certain price, but the buyer's power was still not concentrated, and the stock price weakened again, and then the decline tended to ease, and it was supported when it fell to the previous low price. At this time, the buyer's strength increased and the stock price began to show a strong trend.
It should be noted that when the double top (or double bottom) appears, it may not always show a reversal trend, and sometimes it will still show a finishing form. After the completion of double top or double bottom, an effective breakthrough can only be considered if the neckline exceeds the stock price by more than 3%, otherwise it may still linger or even reverse the trend.
4. Comprehensive use of K line and MACD line.
At present, the most commonly used technical indicators in the market are KDJ and MACD indicators. KDJ index is an advanced index, which is mainly used for short-term operation. MACD, also known as Similarities and Differences smma, is the deviation of the average market cost, which generally reflects the overall trend of the midline.
Theoretically, the lead of KDJ index is mainly reflected in the speed of reflecting the stock price, which belongs to a strong overbought area near 80, and the stock price has certain risks; 50 is a wandering area; Near 20 is a relatively safe area, which belongs to the oversold area and can be used to open positions. However, due to the high speed, the trading signal errors are often frequent; MACD indicator basically runs synchronously with the market price, which increases the requirements and restrictions of sending signals, thus avoiding the appearance of false signals.
The advantage of combining the two to judge the market is that it can more accurately grasp the short-term trading signals of KDJ indicators. At the same time, due to the midline trend reflected by the characteristics of MACD indicators, two indicators can be used to judge the short-term and medium-term fluctuations of stock prices.
From these aspects, we can see that when MACD keeps its original direction, the stock price will still run according to the set trend when the KDJ indicator is overbought or oversold. Therefore, in operation, investors can judge whether the market is adjusting or reversing, and at the same time, they can appropriately avoid the risk of short-term adjustment in order to obtain short positions.
Observing the unit, the sideways adjustment is coming to an end. It can be seen that MACD is still maintaining its original upward trend, and the KDJ indicator is adjusted above 50 to form a golden cross, indicating that the stock price still has a chance to rise again in the short term. Generally speaking, for the judgment of short-term trends, the buying and selling signals sent by KDJ need to be verified by MACD. Once they give the same instructions, the accuracy of buying and selling will be higher.
References:
Baidu encyclopedia: k-line chart