1. Select the appropriate chart.
There are many types of charts in the market, such as K-line chart, time-sharing chart and candle chart. Traders need to choose the right chart according to their own needs. Generally speaking, K-line chart and candle chart are commonly used, which can display information such as stock price, trading volume and price fluctuation.
2. Analyze the trend line
Trend lines can help traders judge the trend of the market and the direction of price changes. In the K-line chart or candle chart, traders can draw a trend line by connecting the high or low points of the stock price. If the trend line is on the rise, it means that the market is on the rise; If the trend line shows a downward trend, it means that the market is in a downward state.
Observe the shape
The patterns in the K-line chart and candle chart can reflect the buying and selling power and mood of the market. For example, the Changyang line represents a strong buying power, and the stock price is more likely to rise; The long yinxian line represents a strong selling power and the possibility of stock price decline. In addition, there are many forms, such as hammer line and engulfing form, and traders need to master the meaning and application of these forms.
4. Analyze the transaction volume
Volume is an important indicator to measure market activity. In the K-line chart or candle chart, the turnover can be displayed as a histogram. If the trading volume increases with the rise of stock price, it shows that the market purchasing power is strong; On the other hand, if the trading volume increases with the stock price decline, it shows that the market selling power is strong.
The above is the basic method of futures stock chart analysis. Traders need more practice and practice to master these skills and succeed in actual trading.