K-line chart K-line, also known as Yin-Yang line, stick line, red and black line or candle line, originated from rice market trading in Tokugawa shogunate era in Japan. After more than 200 years of evolution, it has been widely used in the technical analysis of the securities market and has become one of the most basic methods in technical analysis, thus forming a technical analysis method with complete form and analysis theory. K-line is generally divided into daily K-line, weekly K-line, monthly K-line and minute K-line according to different calculation units. Its formation depends on four data in each calculation unit, namely: opening price, highest price, lowest price and closing price. When the opening price is lower than the closing price, the K line is the positive line (generally in red); When the opening price is higher than the closing price, the K line is the negative line; When the opening price is equal to the closing price, the K line is called a cross star. When the K line is the positive line, the thin line between the highest price and the closing price is called the upper shadow line, the thin line between the lowest price and the opening price is called the lower shadow line, and the column between the opening price and the closing price is called the entity. Because the drawing of K-line contains four basic data, we can judge the length of trading time from the type of K-line. When the opening price is equal to the lowest price and the closing price is equal to the highest price, the K-line is called the bare-headed Dayang line, indicating a strong rebound (Figure1); When the opening price is equal to the highest price and the closing price is equal to the lowest price, the K line is called the big yinxian line, indicating that the exchange rate plummeted (Figure 2); When the opening price is equal to the closing price, and the upper shadow line is equal to the lower shadow line, the K line is called the big cross star, indicating that the battle between long and short is fierce and close, and the market outlook is constantly changing (Figure 3). When the cross star appears in a relatively high position in the K-line chart, it is called the sunset star; When the cross star appears at a relatively low position on the K-line chart, it is called the morning star. The comprehensive K-line type represents the difference of long and short power, with the cross star as the balance point, the positive line is dominant, the positive line is the strongest, the negative line is dominant, and the big negative line is the strongest. It should be noted that when investors look at the K-line, a single K-line is of little significance, but it is meaningful to compare it with the previous K-line. Time-sharing chart and yellow line description: Time-sharing chart refers to the dynamic real-time (real-time) time-sharing trend chart of the market and individual stocks, which plays an extremely important role in actual combat judgment and is an immediate grasp of the transformation of long and short power, that is, the directness and fundamentality of market changes. Here, let me first introduce you to the basic conceptual knowledge.
Real-time time-sharing chart of market index:
1) white curve: it represents the weighted index of the broader market, that is, the actual index of the broader market published by the stock exchange every day.
2) Yellow curve: the market does not contain weighted indicators, that is, regardless of the size of the stock sector, all stocks are regarded as having the same impact on the index to calculate the market index.
Referring to the mutual position of the white and yellow curves, we can know that: a) when the market index rises, the yellow line is above the white line, indicating that the stocks with smaller circulation have a larger increase; On the contrary, the yellow line is below the white line, indicating that small-cap stocks lag behind large-cap stocks. B) When the market index falls, the yellow line is above the white line, indicating that there are fewer stocks with smaller circulation than those with larger circulation; On the other hand, small stocks fell more than large stocks.
3) Red-green column line: There is a red-green column line near the red-white curve, which reflects the trading ratio of all stocks in the market at the moment. The shortening of the growth of the red bar indicates the increase or decrease of purchasing power; The shortening of the growth of the green column line shows the strength of downward selling.
4) Yellow bar line: below the red and white figure, it is used to indicate the turnover per minute, and the unit is hand (each hand is equal to 100 shares).
5) Number of consigned selling lots: it represents the sum of the lots of all stocks in the last three orders after consigning and the last three orders after selling.
6) Commission Proportion Value: it is the ratio of the difference between the number of commission sales hands and their sum. When the commission ratio value is positive, it means that the buyer is stronger and the stock index is more likely to rise; When the commission ratio is negative, it means that the seller is stronger and the stock index is more likely to fall.
Real-time time-sharing chart of individual stocks: 1) White curve: indicates the real-time transaction price of the stock.
2) Yellow curve: indicates the average transaction price of the stock, that is, the total transaction amount of the day divided by the total number of shares traded.
3) Yellow bar line: below the red and white figure, used to represent the turnover per minute.
4) Transaction Details: The transaction details are displayed at the lower right of the disk, showing the dynamic price and lots of each transaction.
5) Outer disk and inner disk: the outer disk is also called active buying, that is, the cumulative volume of the transaction price at the time of selling; Active selling in the market, that is, the cumulative volume of transactions at the purchase price. The outer disk reflects the buyer's wishes and the inner disk reflects the seller's wishes.
6) Volume ratio: refers to the ratio of the total number of lots sold on that day to the average number of lots sold recently, and the specific formula is: current total number of lots/((average number of lots on the 5th day /240)* opening minutes). The volume ratio indicates the recent increase or decrease of volume at this time. A value greater than 1 indicates that the total number of transactions has been enlarged, while a value less than 1 indicates that the total number of transactions has been reduced.
K-line analysis in actual combat must be combined with real-time time time-sharing chart analysis in order to truly and reliably understand the language of the market and understand the mystery of stock price changes on the disk. The analysis method and principle of morphological neckline figure and wave angular momentum in K-line morphological analysis are also suitable for real-time dynamic time-sharing trend chart analysis.
Because of the variety of Yin-Yang lines, Yin-Yang lines and Yang lines contain many changes of different sizes, so it is necessary to discuss the significance of their analysis. Before discussing the analytical significance of "yin-yang line", let's first understand the names of various parts of the yin-yang line. Let's take Yangxian as an example. The part between the highest price and closing price is called "upper shadow", the opening price and closing price are called "entity", and the opening price and lowest price are called "lower shadow". 1. Long red line or Dayang line?
The figure shows that the highest price is the same as the closing price, and the lowest price is the same as the opening price. There is no shadow line up and down. From the beginning of the opening, the buyer actively attacked, and there may be a struggle between the buyer and the seller, but the buyer went all out until the closing. The buyer always has the advantage, which makes the price rise all the way until the close. Represents a strong rebound, the stock market is at a climax, and buyers flock in and buy at unlimited prices. People who hold stocks are reluctant to sell because of their strong purchasing power, and the supply exceeds the demand. 2. Long black line or big negative line?
The figure shows that the highest price is the same as the opening price, and the lowest price is the same as the closing price. There is no shadow line up and down. From the beginning, the seller had an advantage. The stock market is at a low ebb. Those who hold stocks sell stocks without price restrictions, causing panic. The market is one-sided, and the price has been falling to the close, showing a strong decline. 3. First fall and then rise.
This is a red entity with hatching. The highest price is the same as the closing price. After the opening, the selling price was sufficient and the price fell. However, with the support of the buyer's low price, the seller was frustrated, and the price pushed higher than the opening price, rising all the way to the close, and closing at the highest price. Generally speaking, it is a pattern of falling first and then rising, and the buyer's power is greater, but the length of the entity part and the shadow line is different, and the power contrast between the buyer and the seller is also different.
The solid line is longer than the shadow line. The price didn't drop much, but it was supported by the buyer and the price was pushed up. After breaking the opening price, it has been greatly improved, and the buyer has great strength. The real part is equal to the shadow line, and the struggle between buyers and sellers is fierce, but on the whole, the buyer has the advantage and is beneficial to the buyer. The solid line is shorter than the hatched line. On the low price, buyers and sellers launched a fierce competition. If there is buyer's support, the price will be pushed up gradually. However, it can be found from the figure that the upper entity part is small, indicating that the buyer's advantage is not too great. If the seller tries his best to fight back the next day, the buyer's entity will be easily captured. 4. Anti-fall type
This is a black entity with hatching, and the opening price is the highest price. As soon as the market opened, the seller's efforts were particularly strong, and the price dropped, but he met the support of the buyer at a low price. The market outlook may rebound. The lengths of the solid part and the shadow line are different, which can also be divided into three situations: (1) The throwing pressure of the solid part is greater than the shadow line. Once opened, it will be greatly discounted. At the low point, buyers and sellers will compete fiercely, and the shadow line is short, which shows that the buyer has not pushed up the price much. On the whole, the seller has a greater advantage. (2) The entity part is equal to the shadow line, which means that after the seller lowers the price, the buyer's resistance is also increasing, but it can be seen that the seller still has the advantage. (3) The solid part is shorter than the shadow line. The seller kept the price down all the way. When the price was low, the buyer met with stubborn resistance and organized a counterattack, gradually pushing up the price. Although the deal was finally made in Hei Bang, it can be seen that the seller only took a small advantage. In the market outlook, it is likely that the buyer will fight back with all his strength and eat all the little black entities. 5. Rising resistance
This is a red entity with a shadow. The opening price is the lowest. At first, the buyer was strong and the price pushed up all the way, but at high prices, the pressure from the seller prevented the stock price from rising. The struggle between the buyer and the seller resulted in the buyer being slightly better. The specific situation still depends on the length of the entity and the shadow line. The red entity is longer than the lower shadow line, indicating that the buyer encountered resistance when the price was high, and some bulls took profits. However, the buyer is still the dominant force in the market, and the market outlook continues to be bullish. The entity is as long as the shadow line, and the buyer pushes up the price, but the pressure on the seller is also increasing. As a result of the struggle between the two sides, the seller pushed the price back to half, although the buyer had the advantage. But obviously not as big as its advantages. The primitive is shorter than the hatch. When the price is high, the buyer is severely tested by the seller's pressure and the seller's comprehensive counterattack. Most short-term investors have made profits, and after the battle that day, the seller has recovered most of the lost ground. A small fortress (entity part) of the buyer will soon be eliminated. If this K line appears in the high-priced area, the market outlook will be bearish.
6. Go up first and then down.
This is a black entity with a shadow. The closing price is the lowest price. As soon as the market opened, the buyer went to war with the seller. The buyer gained the upper hand and the price went up all the way. However, in the case of high-priced selling pressure resistance, the seller organized forces to fight back and the buyers retreated. Finally, when the price was the lowest, the seller took advantage and exerted his own strength, which made the buyer fall into the "locked" dilemma.
There are three specific situations:
(1) The black entity is longer than the hatched line, indicating that the buyer did not push up the price much, and was immediately strongly countered by the seller, which pushed down the price by a big margin after breaking through the opening price. The seller is particularly powerful and the situation is favorable to the seller. (2) The black entity equals the shadow line, and the buyer pushes up the price; But sellers are stronger and more active. The seller has an advantage. (3) Black entities are shorter than hatched lines. Although the seller has lowered the price, the advantage is less. If you enter the market tomorrow, the buyer's forces may fight back again, and the black entity is likely to be captured.
7. Reverse tentative type
This is a red entity with shadows at the top and bottom. After the opening, the price fell. When the buyer supports it, after the two sides fight, the buyer is strong and pushes up the price all the way. Before closing, some buyers took profits and closed at the highest price. This is a reverse signal. If it appears after the surge, it means that it is a high shock. If the turnover increases greatly, the market outlook may fall. If it appears after the plunge, the market outlook may rebound. Here, the difference between upper and lower shadow lines and entities can be divided into many situations:
(1) Red entity with upper shadow line longer than lower shadow line: further divided into: the shadow line part is longer than the red entity, indicating that the buyer's strength is frustrated. The red entity is longer than the shaded part, which means that despite the setbacks, the buyer still dominates. (2) The red entity whose lower shadow line is longer than the upper shadow line can also be divided into the part where the red entity is longer than the lower shadow line, indicating that the buyer is still in the initiative despite setbacks. The shaded part is longer than the red entity, indicating that the buyer still needs to test. 8. Pop-up exploration type
This is a black entity with shadow lines from top to bottom. In the process of trading, the stock price sometimes strives for the upper reaches after the opening. With the strengthening of the seller's strength, the buyer was unwilling to chase after the high price, and the seller gradually took the initiative, and the stock price reversed, trading at the opening price, and the stock price fell. When the buyer supports at a low price, the buying gas turns stronger and will not close at the lowest price. Sometimes, the stock price is lower than the opening price in the first half, and the buying intention increases in the second half, and the stock price returns to higher than the opening price. Before the closing, the seller took advantage and closed at a price lower than the opening price. This is also a reversal temptation. If it appears after the plunge, it means a low-level undertaking and the market may rebound. If it appears after the surge, the market outlook may fall. 9. Cross line type
This is a kind of figure with only upper and lower shadow lines and no entity. The opening price is the closing price, which means that the stock price is higher or lower than the opening price, but the closing price is equal to the opening price. The buyers and sellers are almost evenly matched.
Among them: the longer the upper shadow line, the heavier the throwing pressure. The longer the shadow line, the stronger the buyer. The upper and lower shadow lines seem to be cross lines of equal length, which can be called turning lines. At high or low prices, it means reversal. 10. "┴" pattern
Also known as the empty winning line, the opening price is the same as the closing price. All the transactions of the day were concluded at a price higher than the opening price, and closed at the lowest price of the day (that is, the opening price), indicating that although the buyer is strong, the seller is stronger and the buyer is unable to rise further. Generally speaking, the seller has a slight advantage. For example, in high-priced areas, the market may fall.
"T" shape, also known as win-win line, the opening price is the same as the closing price, the trading of the day closes at a price lower than the opening price, and the highest price of the day (that is, the opening price) closes. Although the seller is strong, the buyer is stronger and the situation is favorable to the buyer. For example, in low-priced areas, the market will pick up. 1 1.
This comparison is unusual, that is, the opening price, closing price, highest price and lowest price are all at the same price. It just seems that the transaction is very deserted, and there is only one price for all-day trading. This situation of unpopular stocks is relatively easy to happen.