The yin and yang mentioned here refers to the trend direction. Yang stands for continuous rise, while Yin stands for continuous decline. After a period of long and short struggle, if the closing price is higher than the opening price, it means that the bulls have the upper hand. According to Newton's mechanics theorem, under the action of no external force, the price will continue to run in the original direction and speed, so it can be judged that the K-line chart at this time is a positive trend, at least it can be guaranteed that it will present a positive trend at the beginning of the next stage. This actually coincides with one of the three assumptions in technical analysis, that is, the stock price fluctuates along the trend, and it should be the core idea of technical analysis to follow the trend. On the contrary, negative trends are the same.

2. Look at 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.

3. 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.