The big yinxian line, also known as the long yinxian line, is characterized by almost opening at the highest price and closing at the lowest price that day. It means that many parties are losing ground under the attack of the empty side and there is no defense. Under the price limit system, the largest daily yinxian entity in China stock market can reach 20% of the opening price of the day, that is, the daily limit opens and closes.
Morphological recognition of big yinxian;
(1) can appear in any situation.
(2) The negative line entity is long, and there may be a little upper and lower shadow lines in the upward trend, which is the signal of peaking; At the beginning of the decline, there was a big yinxian line, and the market outlook was bearish; On the way down, there was a big yinxian line and continued to be bearish; There is a big yinxian line in the continuous accelerated decline, which is suspected to be bear trap.
The big yinxian line is characterized by almost opening at the highest price and closing at the lowest price that day. The appearance of the big yinxian is ominous for many parties, but things are not so simple. Sometimes after the big yinxian appears, it does not fall but rises.
So how to tell whether the big yinxian line is rising or falling after it appears? There are several situations here:
1, the big yinxian line appears after the rally, especially after the big increase, indicating that the stock price is about to pull back or is making a head. It is wise to sell stocks at this time.
2. A big yinxian line appears after the plunge, suggesting that the short-selling energy has been released almost. According to the principle of "extremes meet", we should give up selling and buying at this time, consider doing more and absorbing some stocks on dips.
The application rules of big yinxian:
1, there is a big yinxian line in the rising market, indicating that the market has fallen deeply.
2. The big yinxian line appears in the falling market, which means that the market is accelerating downward.
Like Dayang Line, Yin Da Line is also a common K-line in stock price chart. The characteristics of Yin Da Line are as follows:
1) No matter what price the stock price is, it may appear;
2) The shadow line entity is relatively long, and the upper and lower shadow lines can be piggybacked;
3) The longer the Yinxian entity, the stronger its strength; Otherwise, its strength will be weaker;
4) Under the daily limit system, the largest daily yinxian entity can reach 20% of the opening price of the day, that is, the daily limit opens and closes.
The function of the big yinxian:
If there is a big negative line in the process of large-scale stock price rise, it means that the stock market may fall, and investors can choose to sell at this time; If there is a big negative line just after the stock price rises, it also indicates that the market outlook will fall and investors need to clear their positions immediately. If there is a big negative line when it falls, it means that there is still room for decline in the market outlook, and investors can continue to choose to short; If there is a big negative line when the stock continues to fall, it means that the stock may bottom out and investors can be prepared to buy the stock.
Trading strategy of bare head and barefoot big yinxian line
First, the big Yinxian line with bare head and barefoot is very lethal. So no matter where it appears, the first reaction of short-term investors is to wait and see first. At least lighten up the position and free up funds to prepare for rolling positions.
Second, if it appears in the bottom area, the stock price jumps down, opens lower and goes lower, forming a big yinxian line with bare head and bare feet, which may be the last vent of the bears, indicating that the bottom is coming, and investors should be prepared to enter the market at any time.
Third, if it appears in the early stage of the pull-up, the stock price will go high and low to form a bald and barefoot Yinxian, which looks like a long Yinxian and is a typical Yinxian dish washing method. Investors can wait and see first and wait patiently for the next wave of pull-up after the dishwashing.
Fourth, if it appears at the end of the pull-up or the beginning of the market, the stock price jumps upward, with an amplitude as high as 10%, opening higher and going lower, and finally closing at a limit, with an amplitude as high as 20% throughout the day and the longest negative line, which is a typical peaking signal. Investors should completely empty their chips and have a rest at this time.