T-line indicates that the entity of K-line is horizontal, that is, the opening price is the closing price, and K-line is shadowless, indicating that the opening price and closing price are the highest prices, but there is a shadow line below. This K-line shape looks like the letter "T", hence the name.
The bottom T-line refers to the K-line that closes at a low level after the stock price has fallen for a long time or dropped sharply. T-shaped line, also known as "dragonfly line", is similar in shape to the capital "T" in English. This K-line has a long lower shadow line, no upper shadow line or a short upper shadow line, indicating that there is some support below. The longer the shadow line, the stronger the support below.
The inherent meaning of the T-shaped line shows that in the struggle between the buyer and the seller, the seller once gained the upper hand, but under the tenacious resistance of the buyer, the seller's strength weakened and finally retreated to the place where he had attacked. At this point, the seller is already a spent force, the buyer's potential power has been completely accumulated, and the stock price will reverse or rebound at any time. The T-line that appears after the stock price plummets is generally the trend that the main force first suppresses and then rises after opening a position at a low position. If this stop signal is recognized by the market, the main force will pull out several positive lines behind the T-line, or make the trend alternate with yin and yang. At this time, the trading purpose of the main force can be roughly judged, and investors can adopt appropriate buying strategies.
Investors should pay attention to the following points when using the bottom T line to buy:
The appearance of (1) T-shaped line at the bottom is often the main force's air-trapping behavior, usually accompanied by the amount of land, which is the signal of bottoming out.
(2) Investors should pay special attention to the stock price trend after the bottom T-line appears. If the stock price lows rise in turn, it can be confirmed that the stock price bottomed out successfully. Otherwise, it is an invalid bottom T-line trend.
(3) Investors must make a stop loss when buying to prevent the possibility of bargain hunting. Once the stock price falls below the lowest price of the T-line, they must stop the loss decisively.