The distance between the highest price and the closing price (yinxian is the opening price) is the upper shadow line, and the distance between the lowest price and the opening price (yinxian is the closing price) is the lower shadow line (figure 1).
Generally speaking, the longer the shadow line, the stronger the power. The long shadow line shows that the selling pressure is serious and the stock price is difficult to rise; The long shadow line indicates that the pressure is serious and the stock price is difficult to fall.
This paper mainly introduces two kinds of long shadow lines, that is, the shadow line is at least three-dimensional 1 times.
1. Forward movement is blocked-long upper shadow line k Long upper shadow line k means that the upper shadow line is obviously higher than the physical K line. There is a long shadow line K line, which means that the intraday selling pressure is serious and the stock price may turn to adjustment or decline.
Generally speaking, the long shadow line K that appears in a wave of obvious rise belongs to the signal of peaking (the longer the shadow line, the greater the possibility of peaking), so you should consider leaving.
However, if the stock price always runs within the K line of the long shadow line in the next three trading days, the possibility of peaking is greatly reduced, and the market outlook may continue to be bullish.
As for finishing or falling market, there is a long shadow line K line, which is a bearish signal and the stock price will still go down. You should wait and see with money and enter carefully.
In the position where the stock price is suspected to peak, there is a time-sharing late-day pull-up, which further increases the possibility of the stock price peaking.
2. Dinghai Shenzheng-long shadow line K Long shadow line K means that the shadow line is obviously longer than the physical K line. There is a long shadow line K line, which means the V-shaped reversal in the day, and the stock price may turn into an adjustment or rising market.
Generally speaking, the long shadow line K in the obvious downward trend is a bottoming signal (the longer the shadow line, the higher the possibility of bottoming), but its reliability is low. Therefore, investors should regard it as an early warning signal of bottoming out and enter the market cautiously.
However, if the stock price always runs within the range of the long shadow line K in the next three trading days, the possibility of bottoming out will be greatly reduced, and the market outlook may continue to fall.
As for the long shadow line K in the consolidation or rising market, it is a bullish signal, which means that the stock price is more likely to go up.
However, if there is a long shadow K line with wide oscillation in the rising market, it is more likely that the stock price will peak.
Warm reminder, the upper and lower shadow lines are just one of all K-line combinations. For all K-line combinations, what matters is not their shape, but their position.
In the downward trend, we should watch more and move less: watch more, first, wait for the signal that the stock price has obviously bottomed out, and second, hone the watching skills; Less movement means that bargain hunting is slow, you are not sure, it is not easy to enter the market, and the short-term rebound is not worth mentioning.
Weekly level, found a continuous bearish signal, the stock is difficult to improve in the short term, investors can temporarily ignore. When a continuous bullish rectangle is found on the weekly chart, the upward trend should last for a long time, so you can consider opening a position in the day.
In actual trading, investors should form a clean trading style, be firm and decisive when finding trading signals, and avoid dragging their feet.