First, the drawing and form of K-line.
K-line, also known as candle chart and daily line, originated in Japan more than 200 years ago. During the Tokugawa shogunate in Japan, rice merchants in Osaka invented the K-line chart in order to record the price fluctuation of rice for one day, one week or one month.
Later, people in the securities market found that this kind of K-line chart is intuitive, three-dimensional and informative, and it can also fully show the strength of the stock price trend and the changes in the balance of power between buyers and sellers, which has a very strong reference function for forecasting the market outlook. Therefore, the K-line chart is gradually introduced into the stock market, foreign exchange market, futures market, etc., and becomes a staff member of stock market investment.
The key to the popularity of K-line is that it has so many powerful and magical functions, but the form is extremely simple.
A k line = rectangle (entity)+shadow line.
Among them, the top and bottom of the rectangle represent the opening price and closing price, the highest point of the upper shadow line represents the highest price, and the lowest point of the lower shadow line represents the lowest price.
In China A-shares, if the share price rises on that day, it is indicated by a red positive line; If the stock price falls that day, it is indicated by a green negative line.
These are just the standard forms of K-line. In reality, the forms of K-line are various.
To sum up, the form of K line 1 * * is 12, as shown in the figure below.
They are:
(a) Bare head and feet
(b) Bald and barefoot.
(c) standard positive line
Standard negative line
bare feet
(f) Barefoot vulva
(g) bald head and positive line
Baldness and pubic line
(1) T-shape
(j) Inverted T-shape
(k) cross
Linear type
Different K-line shapes reflect different connotations. Generally speaking, it can be summarized as two points:
(1) The longer the entity, the stronger the upward or downward trend. Therefore, whenever there is a percent sun, everyone will be very happy. When there is a hundred-point long overcast, it is often very pessimistic
(2) The length of the shadow line reflects the strength of resistance or support. The longer the upper shadow line, the greater the resistance; The longer the hatch, the stronger the support.
According to these two conclusions, it is easier for us to understand various K-line forms. For example, the cross star often means that the power of the long and short engines is temporarily balanced, and the direction of the trend may be about to change.
Bald and barefoot line, bald line, etc It often indicates that many parties have won a decisive victory, which is a rising signal.
On the other hand, if there is barefoot or barefoot, it shows that the bears have won a decisive victory and are a signal of decline.
However, it should be noted that the daily K-line only reflects the fluctuation of the stock price one day, which is easy to be manipulated and often leads to cheating.
Therefore, in order to improve the accuracy of judgment, we need to lengthen the time span and observe the shape of weekly K-line and monthly K-line.
Second, K-line combination
Another way to improve the accuracy of judgment is not just to look at one K line, but to look at the combination of several K lines.
1. Double K-line combination analysis
There are only four combinations of two K-lines: continuous positive line, continuous negative line, first positive and then negative, first negative and then positive. The key point of judgment is: What is the relationship between the second K line and the first K line?
(1) continuous double-yang line
It means that the upward trend continues. If it is a continuous gap, it means that the multi-party offensive is very strong. If this combination appears after the low stock price consolidation, and it is accompanied by the amplification of trading volume, then it shows that there is a great possibility of breakthrough.
2 continuous double negative line:
This shows that the downward trend is still continuing. If there are continuous gaps and double negative lines, it is a very weak combination. If this combination appears in a high position, it should leave decisively.
(3) The alternating line of Yang first and Yin later.
If the yinxian entity is large, most of the yangxian entities of the previous day will be swallowed up, indicating that the upswing is unsuccessful; If the Yinxian entity is small, it is likely to be a technical callback after the breakthrough. If the second K-line is a gap negative line, and it is at the end of a rising market, it may mean that the stock price is difficult to rise again, or even turn around; On the contrary, it may just be a normal callback in the process of rising. If the second negative line directly devours the first positive line, which is the so-called "Yang Yinbao", then this is a strong downward signal.
(4) alternate yin and yang lines first
If the positive line entity is large, and most of the negative line entities were swallowed up the day before, it shows that the downward trend is difficult to sustain; If the Yangxian entity is small, it is likely to be a technical rebound after the decline. If the second K-line is a gap positive line and is at the end of the falling market, it may mean that it is difficult for the stock price to continue to fall or even turn around; On the contrary, it may just be a normal rebound during the decline. If the second positive line directly devours the first negative line, which is called "Bao Yang Yin", and at the same time it is accompanied by the amplification of quantity and energy, then it is a strong rising signal.
2. Three K-line combinations
According to the permutation and combination theory, there should be 9 different combinations of 3 K line. For the convenience of discussion, we can divide these nine kinds into three categories: ascending form, descending form and inversion form.
(1) rising pattern
Continuous sanyang line
It means that the upward trend is strong. If there is a persistent gap and the volume of transactions continues to enlarge, then this trend will be stronger. However, if the third positive line has a long shadow line and a short entity, it means that the stock price may be adjusted after a continuous sharp upside, and the selling pressure is relatively large.
Combination of two yang and one yin
If after two consecutive positive lines, the third K line goes higher and lower, but the lower shadow line is longer, indicating that many parties still control the situation.
If the combination of two yang clips and one yin is found, it means that the empty side is trying to stop the upward attack of many parties, but the Yang line appeared on the third day, especially the longer Yang line, which means that many parties have controlled the situation and the upward trend remains unchanged.
Combination of yin and yang
After the two Yinxian lines with gradually improved positions, there is a Dayang line with low opening and high walking. This pattern often appears in the early stage of market startup, which indicates that there is usually room for stock prices to rise.
(2) Descending mode
Continuous triple negative line
It means that the downward trend is strong. If there is a continuous gap yinxian, then this trend is even stronger. However, if the third negative line shows a longer shadow line and a shorter entity, it means that the stock price starts to buy after a continuous sharp decline and may rebound.
Combination of yin and yang
If there are two consecutive Yinxian lines, the third K line opens lower and goes higher, but the upper shadow line is longer, indicating that the downward trend continues. If there is a combination of two yin clips and one yang, it means that many parties are trying to stop the decline, but on the third day, there is still a negative line, especially the negative line with a long upper shadow line, which means that the empty side has controlled the situation and the downward trend remains unchanged.
Combination of two yang and one yin
The real part of the first two positive lines gradually shortened, and the third big negative line hit a three-day closing price low, so it can be judged that the stock price trend weakened.