First, the definition of gap crossing K line gap crossing K line refers to the obvious price gap between the price of a K line and the closing price of the previous K line in stock or futures trading, and the physical part of the K line is very short, almost a slender cross. The K-line of the cross star usually appears in the bottom reversal signal after the stock price falls, and can also appear at the top after the stock price rises.
Second, the characteristics of the gap across the K line 1. Price gap: One of the characteristics of the gap crossing K-line is that there is an obvious price gap between the price and the closing price. This means that the market sentiment has changed greatly and the buying and selling power has changed obviously.
2. Crosshair entity: The entity part of the cross K line is very short, almost a slender crosshair. This shows that the balance of power between buyers and sellers and the market trend may be reversed.
3. Morphological stability: The K-line with gap crossing is relatively stable and not easily confused by other forms. Investors can judge and analyze through its obvious characteristics.
Third, the significance of jumping through the K line 1. Change market sentiment: The appearance of gap-crossed K-line marks the change of market sentiment, and usually indicates the reversal or adjustment of stock price. When the cross K line appears after the stock price falls, it often means that the market sentiment is about to turn from pessimism to optimism, and the stock price may rise. On the contrary, when the cross K-line appears after the stock price rises, it may indicate that the market sentiment is about to turn from optimism to pessimism, and the stock price may fall.
2. Balance of buying and selling power: the physical part of the cross K line is very short, indicating the balance of power between buyers and sellers. This means that the market is at a critical point and the buying and selling power may reverse. Investors can judge the relationship between supply and demand and the change of buying and selling power in the market according to the appearance of the cross K-line, so as to make corresponding investment decisions.
3. Determine the support level and resistance level: The K line of the cross star can help investors determine the support level and resistance level of the stock price. When there is a K-line with a gap after the stock price falls, the gap of the gap can be used as a support level. On the contrary, when the gap crosses the K line after the stock price rises, the gap of the gap can be used as the resistance level. These support levels and resistance levels can provide reference for investors to buy and sell.
Fourth, the application of gap crossing K line 1. Buy signal: when the stock price falls, the gap crosses the K line, which can be used as a buy signal when the subsequent upward trend is confirmed. Investors can set a buying point above the closing price of the cross K-line to seize the opportunity of stock price reversal.
2. Selling signal: When the cross K line appears after the stock price rises, and the subsequent downward trend is confirmed, it can be used as a selling signal. Investors can set the selling point below the closing price of the cross K-line, so as to gain the callback and falling space of the stock price.
3. Determine the stop-loss position: The emergence of the K-line with gaps can help investors determine the stop-loss position. When there is a cross K-line after the stock price falls, investors can take the gap gap as a stop loss to control the risk and avoid the loss from expanding.
Cross K-line is an important morphological figure, which has high application value in stock technical analysis. Investors can make corresponding investment decisions according to the characteristics and significance of the cross K-line, combined with the changes in supply and demand and buying and selling power in the market. Investment is risky, and investors should act cautiously according to their own risk tolerance and investment experience.