K-line theory originated in Japan and is the oldest technical analysis method. 1750 the Japanese began to analyze rice futures with yin and yang candles. K-line has the characteristics of image thinking that orientals are good at, and it is not as quantitative as the technical indicators obtained by deduction in the west, so subjective consciousness has the upper hand in application. In the face of all kinds of K-line combinations, novices can't help feeling embarrassed. In fact, concentration is the essence. Just as Bruce Lee changed his moves from complicated to simple, he could defeat the enemy with one move. The author also summed up the voluminous K-line solution into three simple moves, namely, looking at yin and yang, looking at the size of the entity and looking at the length of the shadow line.

First of all, look at Yin and Yang.

Yin and Yang represent the trend direction, the positive line indicates that it continues to rise, and the negative line indicates that it continues to fall. Take Yangxian as an example. After a period of long and short struggle, the closing price is higher than the opening price, indicating that the bulls have the upper hand. According to Newton's mechanics theorem, in the absence of external force, the price will still run in the original direction and speed, so the positive line indicates that the next stage will continue to rise, at least to ensure that the next stage will start with inertia. Therefore, the positive line often indicates that it will continue to rise, which is also in line with one of the three assumptions that the stock price fluctuates along the trend in technical analysis, and this trend is also the core idea of technical analysis. Similarly, the Yinxian line continues to fall.

Second, look at the size of the entity.

The size of the entity represents the intrinsic motivation. The larger the entity, the more obvious the upward or downward trend, and vice versa. Take Yangxian as an example, its entity is the part where the closing price is higher than the opening price. The larger the positive line entity, the greater the strength, just like the physical principle that the greater the mass and speed of the object, the greater its inertia impulse. The larger the Yangxian entity is, the greater its internal rising power will be, and the rising power will be greater than that of Xiaoyang entity. In the same way, it can be concluded that the larger the Yinxian entity, the more sufficient the downward momentum.

Third, look at the length of the shadow line.

Shaded lines represent turning points. The longer the shadow line in one direction, the more unfavorable it is for the stock price to change in this direction, that is, the longer the shadow line, the more unfavorable it is for the stock price to rise and the longer the shadow line, the more unfavorable it is for the stock price to fall. Take the hatching as an example. After a long and short period of struggle, the Bulls were finally defeated in the last quarter. Once beaten, twice shy. No matter whether the K-line is Yin or Yang, the upper shadow line has constituted the upward resistance in the next stage, and the probability of downward adjustment of the stock price is greater. Similarly, the hatched line indicates that the probability of an upward attack on the stock price is high. A complete graphic tutorial: /main/viewthread.php? tid=27099