1. Look at Yin and Yang, representing the trend direction. The communication analysis software of currency circle is mostly green in the positive line and red in the negative line. The positive line indicates that it continues to rise, and the negative line indicates that it continues to fall. Take the positive line as an example. After a period of long-short struggle, the closing price is higher than the opening price, indicating that bulls have the upper hand, and the positive line indicates that the next stage will continue to rise, at least ensuring that the next stage can be driven by inertia. On the contrary, the negative force is the same.
2. Look at the size of the entity. The size of an entity represents intrinsic motivation. The larger the entity is, the more obvious the upward or downward power is, and the opposite power is not obvious. Take Yangxian as an example, its real subject is the part where the closing price is higher than the opening price. The larger the positive line entity, the greater the upward momentum. The larger the Yangxian entity is, the greater its internal upward momentum will be, and the upward momentum will be greater than that of Xiaoyang line. On the contrary, the negative force is the same.
According to the length of the hatch, the hatch represents the turning point signal. The longer the shadow line in one direction, the worse it is for the stock price to move in this direction, that is, the longer the shadow line, the worse it is for the stock price to rise, and the longer the shadow line, the worse it is for the currency price to fall. Take the shadow line as an example. After a long struggle, the bull was defeated. No matter whether the K-line is yin or yang, the upper shadow line has already constituted the resistance in the next stage, and the probability of price downward adjustment is greater.