the verification signal of the inverted hammer line may take the following form: the opening price of the inverted hammer line jumps upward the next day, which exceeds the entity of the inverted hammer line.
that is to say, on the day when the hammer candle line is inverted, the opening price of the market is at or near the lowest price on that day.
For the inverted hammer line, the bullish verification signal is very important because the price change process that forms the inverted hammer line seems to be bearish.
the longer the market stays above the inverted hammer line entity, the greater the possibility of the above short stop loss.
There is a common method for stock trading: look at the stock K-line. If you want to invest in stocks, you can use the K-line to find the "law" and better apply it to daily stock operations. < P > Let's analyze the K-line and teach you how to analyze it.
before sharing, I'll give you some stock trading artifacts for free, which can help you collect and analyze data, evaluate and get the latest information, etc. They are all practical tools I often use. I suggest collecting them: nine stock trading artifacts are free (with sharing codes)
1. What does the stock K-line mean?
The K-line chart has many other names, such as candle chart, Japanese line, Yin-Yang line, etc. This is what we often call the K-line. It was invented to better calculate the rise and fall of rice prices, and was later applied to stock markets, futures, options and other securities markets.
a columnar bar composed of hatched lines and entities is called a k-line. The part of the shadow line above the entity is called the upper shadow line, and the lower part is called the lower shadow line. The entity is divided into positive and negative lines.
Ps: Shaded lines represent the highest and lowest prices of the day, and entities represent the opening and closing prices of the day.
There are three ways to express the positive line, namely, red, white column and black box hollow, while the negative line is represented by green, black or blue solid column.
In addition, when you visually see the "crosshair", it means that the entity part is converted into a line.
In fact, the crosshair is easy to understand, and the closing price is actually the same as that at the opening.
Through the K line.
I'd like to remind you that K-line analysis is complicated. If you just started trading stocks and the K-line is unclear, I suggest using some auxiliary tools to help you judge whether a stock is worth buying.
For example, if you enter your favorite stock code in the following stock diagnosis link, you can automatically help you evaluate and analyze the market situation, etc. I used this method to transition when I first started trading stocks, which is very convenient: test the current valuation position of your stock for free?
I'm going to tell you a few tips about K-line analysis to help you get through this entry stage.
second, how to use the stock K line for technical analysis?
1. The solid line is the negative line
The trading volume of the stock will be seen at this time. If the trading volume is not large, it means that the stock price may decline in the short term; If there is a large turnover, the stock price will definitely fall for a long time.
2. The solid line is a positive line
What does it mean that the solid line is a positive line? It fully shows that the power of stock price rise is more sufficient, and whether it is a long-term rise must be judged in combination with other indicators.
For example, factors/indicators such as market format, industry prospect, valuation, etc., but due to space problems, we can't go into details. You can click on the following link to learn: Basic knowledge of stock market for novice Xiaobai
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