Island reversal is an important reversal pattern in stock morphology, which means that after this pattern appears, the stock trend will often turn in the opposite direction. Investors should make timely decisions to buy (top) or sell (bottom) when seeing this pattern.
Island-shaped reversal is divided into top island-shaped reversal and bottom island-shaped reversal, which is a signal of strong reversal of stock trend.
When trading stocks, everyone often looks at the stock K-line. The stock market has always been relatively risky. You can use the K-line to find some "patterns" to make better investments and gain profits.
Let me explain the K-line to my friends and teach them where to start to analyze it.
Before sharing, I will give you a few stock trading artifacts for free, which can help you collect analysis data, valuation, understand the latest information, etc. These are my commonly used practical tools. I recommend collecting them: Nine Tips for Stock Trading Get the great artifact for free (with sharing code)
1. What does the stock K-line mean?
K-line chart is also called candle chart, Japanese line, Yin-Yang line, etc. The most common name is--K line. It originally appeared to calculate the trend of rice prices. Later, stocks , futures, options and other securities markets can also use it.
It looks like a column and can be divided into shadow lines and entities. We call this K-line. The part of the shadow line above the real body is called the upper shadow line, and the part below it is called the lower shadow line. The real body is divided into positive line and negative line.
Ps: The shadow line represents the highest and lowest trading price of the day, and the entity represents the opening price and closing price of the day.
There are three ways to represent the positive lines, namely: red, white columns and black frame hollows, and the negative lines are represented by black, green or blue solid columns. In addition to the above, When we see the "crosshair", the solid part is converted into a line.
In fact, the cross line is very easy to understand. The cross line can reflect the closing price = opening price of the day.
As long as we deeply understand the K-line, we can easily find the buying and selling points (although the stock market is unpredictable, the K-line still has certain guiding significance), and it is also the best to control for novices.
There is one aspect that everyone should pay attention to here. It is difficult to analyze the K-line. If you have just started to speculate in stocks and are not clear about the K-line, it is recommended to use some auxiliary tools to help you judge a stock. Is the stock worth buying?
For example, in the stock diagnosis link below, if you enter your favorite stock code, it will automatically help you with valuation, analysis of the market situation, etc. I used this method to make the transition when I first started trading stocks. Very convenient: free test of your stock’s current valuation position?
Now I will tell you some tips about K-line analysis, so that you can quickly know some simple knowledge.
2. How to use stock K-line for technical analysis?
1. The real line is a negative line
At this time, the main thing to look at is the trading volume of the stock. Once the trading volume is small, it means that the stock price may fall in the short term; If the volume is large, the stock price is likely to fall for a long time.
2. The real line is positive.
If the real line is positive, it means that the stock price has more room to rise. As for whether it is a long-term rise, it still needs to be judged in conjunction with some other indicators.
For example, factors/indicators such as market conditions, industry prospects, valuations, etc. However, due to space issues, we cannot go into details. You can click on the link below to learn: A complete collection of basic stock market knowledge necessary for novices
p>Response time: 2021-09-08, the latest business changes are subject to the data displayed in the link in the article, please click to view