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What does K-line mean in the stock market?
K-line theory originated in Japan and is the oldest technical analysis method. 1750 the Japanese began to analyze rice futures with yin and yang candles. K-line has the characteristics of image thinking that orientals are good at, and it is not as quantitative as the technical indicators obtained by deduction in the west, so subjective consciousness has the upper hand in application. In the face of all kinds of K-line combinations, novices can't help feeling embarrassed. In fact, concentration is the essence. Just as Bruce Lee changed his moves from complicated to simple, he could defeat the enemy with one move. The author also summed up the voluminous K-line solution into three simple moves, namely, looking at yin and yang, looking at the size of the entity and looking at the length of the shadow line.

A look at yin and yang

Yin and Yang represent the trend direction, the positive line indicates that it continues to rise, and the negative line indicates that it continues to fall. Take Yangxian as an example. After a period of long and short struggle, the closing price is higher than the opening price, indicating that the bulls have the upper hand. According to Newton's mechanics theorem, in the absence of external force, the price will still run in the original direction and speed, so the positive line indicates that the next stage will continue to rise, at least to ensure that the next stage will start with inertia. Therefore, the positive line often indicates that it will continue to rise, which is also in line with one of the three assumptions that the stock price fluctuates along the trend in technical analysis, and this trend is also the core idea of technical analysis. Similarly, the Yinxian line continues to fall.

Second, look at the physical size.

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.

Third, 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. 1, the daily K-line is drawn according to the four price points formed in the daily trend of stock price (index), namely, opening price, closing price, highest price and lowest price. When the closing price is higher than the opening price, the opening price is lower than the closing price, and the rectangular column between them is drawn in red or hollow, which is called the positive line; The highest point of the upper shadow line is the highest price, and the lowest point of the lower shadow line is the lowest price. When the closing price is lower than the opening price, the opening price is lower than the upper closing price. The rectangular column between them is drawn with black or solid lines, which is called negative line. The highest point of the upper shadow line is the highest price, and the lowest point of the lower shadow line is the lowest price. 2. According to the calculation cycle of K-line, it can be divided into daily K-line, weekly K-line, monthly K-line and annual K-line. Weekly K-line refers to the K-line chart drawn with the opening price on Monday, the closing price on Friday, the highest price and the lowest price in the whole week. The monthly K-line is based on the opening price of the first trading day of a month, the closing price of the last trading day and the highest and lowest prices of the whole month. The definition of annual K-line can also be derived. Weekly K-line and monthly K-line are often used to judge the mid-term market. For short-term operators, the 5-minute K-line, 15-minute K-line, 30-minute K-line and 60-minute K-line provided by many analysis software also have important reference value. 3. According to the fluctuation range of opening price and closing price, K-line can be divided into extreme yin, extreme yang, small yin and small yang, middle yin and middle yang, and big yin and big yang. Their approximate fluctuation range (as shown in the figure). The fluctuation range of extreme yin line and extreme yang line is about 0.5%; The fluctuation range of xiaoyin line and xiaoyang line is generally 0.6-1.5%; The fluctuation range of Yinzhong Line and Zhongyang Line is generally1.6-3.5%; The fluctuation range of Yin Da Line and Dayang Line is above 3.6%. The detailed analysis can be found on this website:/gprm/gprm/gprm12.html The columns in the K-K diagram can be divided into positive lines and negative lines. Generally, the red column represents the positive line and the black column represents the negative line. If the closing price is higher than the opening price in the time period indicated by this column, that is, the stock price rises, the column is painted red, otherwise it is painted black. If the opening price is exactly equal to the closing price, a cross line is formed. 4. The K-line chart can be divided into: positive line, negative line, negative line, negative line, cross line, cross line, cross star, single line and so on. Yang line is divided into big Yang line and small Yang line, and Yin line is also divided into big Yin line and small Yin line. 1. Yangxian line: the opening price was close to the lowest price in the whole day, and then it rose all the way to the highest price, indicating that the market buying enthusiasm was high and the gains were not exhausted; 2. Yinxian: The opening price is close to the highest price in the whole day, and then the price falls all the way to the lowest price, indicating that the market has a strong downward trend, especially in the high-priced area, which is more dangerous; 3. Lower shadow line: the price once fell sharply, but supported by buying power, the price rebounded and closed at the highest price, which was a strong form; 4. Lower shadow line: After the price once fell sharply, but supported by buying power, the price rebounded upward. Although the closing price is still lower than the opening price, it can also be regarded as strong. However, it appears in the high-priced area, indicating that the price has a callback requirement, and attention should be paid to selling; 5. Upper shadow line: the price rises and falls, and the increase is blocked. Although the closing price is still higher than the opening price, there is resistance above it, which can be regarded as weak; 6. upper shadow line: the price is blocked and the increase is blocked. Although the closing price is still higher than the opening price, there is resistance above it, which can be regarded as weak; 7. Cross line: After the opening, the price dropped sharply, but it was supported at the low level. The buying below was proactive and finally closed near the highest price, showing strong performance. When the long shadow line appears in the low-priced area, it is often an important inversion signal; 8. Inverted crosshair: After the price skyrocketed, it encountered strong resistance at a high level and was finally forced to close the position near the opening price. Although there is a desire to attack, the market has repair requirements and is weak. When the reverse reticle appears in the high-priced area, it is often an important change signal; 9. Cross star: The buyers and sellers are evenly matched and the trend is stable; However, in a strong city, the cross star often becomes the intersection of market power transformation, and the market outlook may change; 10 word line: the four-in-one k line reflects that the market turnover is light and it is difficult to have a big change in the market outlook; However, if it appears in the daily limit (down limit), it means that the power gap between buyers and sellers is too big, and the direction of the market outlook is clear, which is difficult to reverse in the short term.