K-line chart, which originated in Japan, was used by Japanese rice market businessmen to record the rice market and price fluctuation at that time, and was later introduced into the stock market and futures market because of its ingenious and unique drawing method. At present, this chart analysis method is particularly popular in China and even the whole Southeast Asia. Because the chart drawn in this way looks like candles, and these candles are black and white, it is also called yin-yang line chart. Through the K-line chart, you can completely record the market performance every day or for a certain period of time.

After a period of trading, the stock price forms a special region or form on the chart, and different forms show different meanings. We can find some regular things from these morphological changes. K-line chart can be divided into reverse shape, arrangement shape, gap and trend line. From the third section of this chapter, we will analyze these forms one by one.

A, drawing method

First, we find the highest price and the lowest price of the day or a certain period of time, and connect them vertically into a straight line; And figure out the date or something

A cycle of opening and closing prices connects the two prices into a long and narrow rectangular column. If the closing price of the day or a certain period of time is higher than the opening price (that is, lower prices and higher prices), we will indicate it in red or leave a blank on the column, which is called "positive line". If the closing price of the day or a certain period of time is lower than the opening price (that is, high opening and low going), we will use blue or paint the column black, and this column is the "negative line".

Second, advantages

Can fully and thoroughly observe the real changes in the market. From the K-line chart, we can not only see the trend of the stock price (or market), but also understand the daily market fluctuation.

Third, shortcomings

The drawing method of (1) is very complicated, which is the most difficult to make among many trend charts.

(2) There are many changes in the line of Yin and Yang, so it is difficult for beginners to master the analysis, which is not as simple and easy to understand as a histogram.

Fourth, the significance of 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 length difference between the solid line and the shadow line can also be divided into three situations:

(1) The throwing pressure of the solid part is greater than the shadow line. It was greatly suppressed as soon as it opened. At the low point, buyers and sellers encounter resistance, and the shadow line is short, indicating that the buyer has not pushed the price up much. Generally speaking, the seller has great advantages.

(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) The red entity with the upper shadow line longer than the lower shadow line is 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 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.