2. Elements: drawn according to the opening price, highest price, lowest price and closing price of each analysis period. Take the daily K-line as an example, first determine the opening price and closing price, and draw the part between them into a rectangular entity. If the closing price is higher than the opening price, the K line is called the positive line, which is represented by a hollow entity. On the contrary, it is called a negative line and is represented by a black entity or a white entity. At present, many softwares can use colored entities to represent negative and positive lines. In the domestic stock and futures markets, red is usually used to represent the positive line and green is used to represent the negative line. However, investors who participate in European and American stock and foreign exchange markets should pay attention to the fact that in these markets, green is usually used for the positive line and red for the negative line, which is just the opposite of domestic habits. ) Connect the highest price and the lowest price with the entity with thin lines. The line between the highest price and the entity is called the upper shadow line, and the line between the lowest price and the entity is called the lower shadow line.
3. Advantages
Can fully and thoroughly observe the real changes in the market. From the K-line chart, we can not only see the trend of the stock price (or market), but also understand the daily market fluctuation.
4. Shortcomings
The drawing method of (1) is very complicated and it is one of the most difficult charts to make.
(2) There are many changes in the line of Yin and Yang.
5. Analyze the K-line chart of foreign exchange
Single-day K-line pattern
The uniqueness of the K-line chart is that the strength of the market can be preliminarily judged by using the single-day K-line pattern.
The following are some basic K-line forms for reference only:
Dayang Line (Changhong): The opening price was close to the lowest price in the whole day, and then the price rose all the way to the highest price, indicating that the market buying enthusiasm was high and the gains were not exhausted.
Big Yinxian (long black/long green): The opening price is close to the highest price in the whole day, and then the price drops to the lowest price, indicating that the market has a strong downward trend, especially in the high-priced area, which is more dangerous.
Lower shadow line: the price once fell sharply, but supported by buying power, the price rose again and closed at the highest price, which was a strong form.
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.
Upper shadow line: prices rise and fall, and the gains are blocked. Although the closing price is still higher than the opening price, there is resistance above, which can be regarded as weakness.
Upper shadow line: the price rise is blocked, the rise is blocked, the closing price is lower than the opening price, and there is resistance above, which can be regarded as weak.
Crosshair: The price dropped sharply after the opening, 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 reversal signal.
Inverted crosshair: After the price skyrocketed, it encountered strong resistance at a high level and was finally forced to close its position near the opening price. Although there is a desire to attack, the market has repair requirements and is weak. When the inverted crosshair appears in the high-priced area, it is often an important change signal.
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.
Word line: Four-in-one K line reflects that the market transaction 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.
Two-day k-line combination
By observing the K-line shape for two consecutive days, it is more reliable to measure the market combined with whether the current position is a high-priced area or a low-priced area.
High inversion form:
Yesterday, the cross closed and the multi-head attack was blocked; The next day, it opened higher and went lower, and finally closed near yesterday's closing price, indicating that the competition between long and short positions was fierce and the top selling pressure was heavy. Pay close attention to the market outlook and pay attention to delivery.
Yesterday, the reticle closed and the price showed signs of reversal; The next day, the market opened below yesterday's closing price, then the price fell all the way, and finally closed at the negative line, indicating that the empty side took the initiative, indicating that the market turned down and should pay attention to delivery.
Yesterday, the Zhongyang line closed, and the buyer was in full swing; After opening higher the next day, many parties could not follow the trend and fell sharply below yesterday's closing price, so the market weakened; This pattern appears after the high consolidation, so beware of the banker pulling the boat.
Yesterday, the Zhongyang line closed, and the buyer was in full swing; The next day, the upside was blocked again, and finally closed at the Yinxian line, but it was still above yesterday's closing price, indicating that the long-short competition was extremely fierce and the bulls were better. Pay close attention to the changes in the market outlook.
Low inversion form:
Yesterday, the cross line closed, indicating that the buying below was positive and the price stopped falling and stabilized. After the opening of the next day, the price continued to rise and finally closed at Xiaoyang Line, so the bulls' confidence increased and the price rebounded quickly. This combination appears in the low-priced area, which is a standard rebound form.
Yesterday, the Yinxian line closed, and the bears were fierce. The next day, it opened sharply lower. However, the buyer actively entered the market at the low level, rising instead of falling, and finally closed at the positive line, which was higher than yesterday's closing price, indicating that the empty side is weak and the price may rebound.
Yesterday, the Yinxian line closed, and the next day it opened sharply higher, and the price rose all the way, and finally closed at the highest price, indicating that many parties won, and the market outlook is expected to strengthen.