This is a common K-line for investors. But not many people can really pay attention to it, understand its meaning, deeply understand its connotation, and operate according to its intention. In fact, the positive line represents the power to do more, and the relatively low positive line means the main force comes into play. This K line marks the arrival of the bottom, and the whereabouts of the main force have been revealed by this K line. This is a confirmation signal. You can gradually enter the market in batches on the day of Dayang Line or in the subsequent callback, keep up with the pace of the main force, buy at a relatively low level, and wait for the main force to pull up.

For example, in August 2006 10, China Unicom (600050) pulled out a Dayang line. Previously, individual stocks all fell with the broader market. Such a positive line clearly tells us that the main organization has entered the market, and we must follow the main organization. Since then, these two stocks have fluctuated all the way, and their share prices have gone faster and faster. Both of them have come out of the long-term bull market, and their share prices have more than doubled since the day they pulled out the Dayang line. (see the picture below)

Yin Da line

The negative line represents the power of shorting. The big yinxian line represents a powerful short-selling force. A relatively high negative line means that a large amount of funds flee, that is, the main institutions are shipping. Now that the organization is gone, what do we have to miss?

Let's take China Unicom as an example. See how their "head" on February 2, 2004 told us with the iconic K-line. (see the picture below)

Of course, it will take a long time for the main institutions to enter the market and leave the market. Sometimes, we will see that after the relatively low Dayang line comes out, the stock price falls, and after the relatively high Yinxian line comes out, the stock price rises. This is a trick used by institutions to lure short positions and attract more shipments.

For the weak market, the institution entered the market on the positive line, but then the market environment was not good, and the main force could not raise the stock price according to the established plan. Reducing the position again would cause the rebound market that ordinary investors thought, but even so, we still had enough time and the principle of capital preservation to leave the market.

In a strong market, institutions will make a big yinxian to wash dishes. At this time, it is often difficult for investors to judge, but even if the dishes are washed, there will usually be an adjustment stage, and they can temporarily withdraw. One can avoid this adjustment by leaving the market, and the other, when the stock price restarts, we can completely follow up now.