-Yin and Yang represent the trend direction of long and short positions, the positive line indicates that it is in an upward market and may continue to rise, and the negative line indicates that it is in a downward market and may continue to fall. Take Yangxian as an example. After a period of long and short struggle, the closing price is higher than the opening price, which indicates that the bulls have the upper hand, so Yangxian indicates that the price will continue to rise in the next stage.

2. Look at the entity again.

Entity refers to the difference between the closing price and the opening price of K-line. The bigger the spread, the stronger the K-line. Therefore, in foreign exchange transactions, if you choose a larger K-line, such as Yin Da Line and Dayang Line, the probability of successful transactions is higher.

3. finally, look at the shadow line

Shadow line refers to the price difference between the highest and lowest K line or the lowest price and the closing price. For example, hatching refers to the price difference between the highest price and the closing price. The farther the distance between the highest point and the closing price, the longer the lower shadow line, indicating that the rising power is affected by yin. At this time, it is more favorable to buy down and short. The lower shadow line refers to the price difference between the lowest price of K line and the closing price. The longer the shadow line, the stronger the counterattack of rising. Therefore, in foreign exchange trading, if you see that the shadow line on the K line is too long, you can't make more orders. If you see that the shadow line on the K line is too long, you can't short orders.

The advantage of judging the rise and fall of foreign exchange K-chart is very clear, simple and rude, but it also has certain risks. None of the methods and techniques is 100% correct. Investors must have a clear understanding in trading and stop loss. In addition, we should also pay attention to the market trends in the international market, and formulate countermeasures in time if the market changes significantly.

K-line diagram judgment method

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 increase was endless;

The big yinxian line (long black/long green): the opening price is close to the highest price in the whole day, and then the price falls 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;

Shangyingxian Yangxian: The price falls back and the gains are blocked. Although the closing price is still higher than the opening price, there is resistance above it, which can be regarded as weak;

Shadow line: the price is blocked, the increase 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 inversion 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 reverse reticle 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: the four-in-one K line reflects that the market turnover 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 according to whether the location is a high-priced area or a low-priced area.

High inversion form:

Yesterday, the reticle closed, and the bulls were blocked from going up; 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 Yinxian line, indicating that the empty side took the initiative and that the market turned down, so we 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 confidence of bulls increased greatly and the price rebounded quickly. This combination appears in the low-priced area, which is a standard rebound form.

Yesterday, the bears were fierce and opened sharply lower the next day. 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 short-selling power is weak and the price may rebound.

Yesterday, the Yinxian line was shortened, and the next day it opened sharply higher. The price rose all the way, and finally closed at the highest price, indicating that many parties won a great victory and the market outlook is expected to strengthen.

note:

There are many combinations of K-lines with different meanings. We should analyze them according to different price levels and their changing trends. Parameter setting can be combined with other auxiliary indicators (such as moving average, SAR, transaction accumulation) and so on.