K-line is very important in stock analysis, and the trend determines our trading. So, how many days is the annual line of K-line? What is the function of this line? So today, how many days has Bian Xiao sorted out the K-line here? Let's have a look!
How many days is the K-line annual line?
The 250-day moving average of stocks has an average of 250 trading days a year. There are an average of 250 trading days in a year. Similarly, the half-year line 120 moving average, the quarterly line 60 moving average, the monthly line 20 moving average, and the weekly line 5 moving average. K-line is divided into annual line, monthly line, weekly line and daily line, and is calculated on the basis of real time.
K-line annual line is a long-term moving average, which is used to judge long-term trends. On the contrary, it is a bull market, and on the contrary, it is a bear market. Breaking the annual line means that the worst is over. This is a theoretical and technical analysis, and it is also a very practical introductory skill.
What does K-line mean?
K-line chart is also called candle chart, commonly known as "K-line". K-line is drawn according to the opening price, highest price, lowest price and closing price of each analysis period. Through the K-line chart, we can completely record the daily or periodic market conditions. After a period of trading, the stock price forms a special region or form on the chart, and different forms show different meanings.
K-line originated in Tokugawa shogunate era in Japan (1603 ~ 1867), and was used by businessmen in Japanese rice market to record market and price fluctuations. Later, it was introduced into futures because of its exquisite and unique drawing method. Many people think that the K-line started from the stock market.
Investors must know
The first method: look at yin and yang.
The composition of Yin-Yang line includes four elements: opening price, closing price, highest price and lowest price. These four prices divide the whole candle (K) line into three parts: solid part, upper lead and lower lead. The figure of Yin-Yang line is drawn by using the opening price, closing price, lowest price and highest price generated by the market in a certain period of time. Its single K-line records the opening price, closing price, highest price and lowest price of the day; In the hourly chart, its single K line records the opening price, closing price, highest price and lowest price of this hour.
The second method: 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 price to change in this direction, that is, the longer the upper shadow line, the more unfavorable it is for the price to rise, and the longer the lower shadow line, the more unfavorable it is for the 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 already constituted the upward resistance in the next stage, and the probability of downward price adjustment is greater. Similarly, the lower shadow line indicates that the probability of price upward attack is high.
The third method: 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.
The role of 250-day moving average
The 250-day moving average is the average closing price of stocks in the market for 250 days. Its significance lies in that it reflects the average cost of stocks for 250 days. The bull-bear line of the 250-day moving average stock price trend, that is, in the law of the 250-day moving average system, the 250-day moving average has another name: the dividing line of the bull-bear trend.
In practice, the 250-day moving average is often used to judge the bull-bear conversion of stock trends. The trend direction of the 250-day moving average and whether the stock price rises or falls below the 250-day moving average have important technical analysis significance. If a large number of stocks in the market show such a trend, it means that there will be a wave of market, or there will be new speculation themes in the market.
The function of the 250-day moving average is very similar to that of the 120-day moving average. In practice, the trend of large and medium-sized stocks often plays a greater role in the 250 moving average, but has a smaller role in the 120 moving average, and the role and effect are more obvious when the 250-day moving average and 120 moving average are used together. The 250-day moving average is mainly support and pressure.
Supporting function: namely, the rising 250-day moving average has a supporting effect on the stock price. Pressure effect: that is, the 250-day moving average in a declining state has pressure on the stock price, and it takes volume and time to break through this pressure. Therefore, before the 250-day moving average goes flat or goes up, you can't intervene, otherwise you will buy and set orders again and again, losing money and time. The 250-day moving average can hardly be used alone, but it is mainly used in conjunction with the 20-day moving average and 120-day moving average, which mainly plays an auxiliary reference role.