Low price difference = opening price-the lowest price of the day, indicating that there are many bulls and losers in this K-line chart.

And no matter whether the entity of the K-line is Yin or Yang, as long as there is a long shadow line (generally larger than the entity) and it appears at a historical high or low level, some people call it a hammer line. The appearance of the hammer line often indicates the reversal of the market. The high reversal is of course a decline, and it can also be said that it is a high-grade difference and a low-grade difference.

: 1. What is a K-line chart?

The drawing method of K-line chart in stock market and futures market includes four data: opening price, highest price, lowest price and closing price. All K-lines are centered around these four data, reflecting the general situation and price information. 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. Its advantage is that it can comprehensively and thoroughly observe the real changes in the market. From the K-line chart, we can not only see the trend of the stock price (or market), but also understand the daily market fluctuation.

Two: What is the hammer line?

Brief introduction of hammer line (also known as hammer line);

On the way down, the positive line (or negative line) is generally small, and there is generally no shadow line (even if there is, the upper shadow line is very short), but the lower shadow line is very long. If the entity and the upper shadow line are too long, it is a single needle bottoming form. The meaning of single needle priming and hammer line (hammer line) form is basically the same, and the operation is the same. There is no strict distinction.

Hammer line (hammer line) generally appears at the bottom of the market after the stock price continues to fall, and its effectiveness (bullish market outlook) can be confirmed.

Morphological points:

1, before the hammer line (hammer line) appeared, the stock price was in a downward trend after a period of decline. At this time, this form has reference significance.

2. The smaller the hammer, the longer the shadow line, the more obvious the effect of stopping falling and the greater the reference value.

3. After the hammer line (hammer line) appears, if the next K line is a longer entity's positive line, and its closing price exceeds the highest price of the hammer line (hammer line), then this may indicate the arrival of a new round of rising market.

4. After the hammer line (hammer line) appears, if the next K line is closed as a longer entity's negative line, the market may maintain a downward trend.

5. If the hammer line appears with the morning star, the bottom signal is more reliable.

Operation strategy:

1, when there is an obvious upward trend and the increase is not large, if the bottom signal of the hammer line (hammer line) appears in the upward callback process, you can follow up and do more, and if the volume can increase, it will be more reliable;

2. If it is already at a relatively high level, and then the hammer line (hammer line) bottoms out during the shock finishing process, it is only suitable for short-term long;

3. If there is a bottom signal of the hammer line (hammer line) in the obvious downward trend, it is better to wait and see, and only short-term light positions can be involved in the operation.