1, look at yin and yang.

The yin and yang mentioned here refers to the trend direction. Yang stands for continuous rise, while Yin stands for continuous decline. After a period of long and short struggle, if the closing price is higher than the opening price, it means that the bulls have the upper hand. According to Newton's mechanics theorem, under the action of no external force, the price will continue to run in the original direction and speed, so it can be judged that the K-line chart at this time is a positive trend, at least it can be guaranteed that it will present a positive trend at the beginning of the next stage. This actually coincides with one of the three assumptions in technical analysis, that is, the stock price fluctuates along the trend, and it should be the core idea of technical analysis to follow the trend. On the contrary, negative trends are the same.

2. Look at the entity.

The size of the entity represents the intrinsic motivation. The larger the entity, the more obvious the upward or downward trend, and vice versa. Take Yangxian as an example, its entity is the part where the closing price is higher than the opening price. The larger the positive line entity, the greater the strength, just like the physical principle that the greater the mass and speed of the object, the greater its inertia impulse. The larger the Yangxian entity is, the greater its internal rising power will be, and the rising power will be greater than that of Xiaoyang entity. In the same way, it can be concluded that the larger the Yinxian entity, the more sufficient the downward momentum.

3. Look at the length of the shadow line.

Shaded lines represent turning points. The longer the shadow line in one direction, the more unfavorable it is for the stock price to change in this direction, that is, the longer the shadow line, the more unfavorable it is for the stock price to rise and the longer the shadow line, the more unfavorable it is for the stock price to fall. Take the hatching as an example. After a long and short period of struggle, the Bulls were finally defeated in the last quarter. Once beaten, twice shy. No matter whether the K-line is Yin or Yang, the upper shadow line has constituted the upward resistance in the next stage, and the probability of downward adjustment of the stock price is greater. Similarly, the hatched line indicates that the probability of an upward attack on the stock price is high.

Expand the knowledge of futures k-line chart

The shortest trend period of K-line is 1 minute K-line, and the longest is annual line. The short-period K line, minute line and daily line are the most widely used in actual combat.

The drawing of K-line chart of futures market includes four data: opening price, highest price, lowest price and closing price. All K-lines are centered around these four data, reflecting the general situation and price information.

In futures investment transactions, there may be a 5-minute false break through the K-line pattern. After all, the five-minute K-line appears as many as 48 times a day, and futures investors must have the skills to identify this false breakthrough pattern.

Common K-line forms can be divided into reverse form, arrangement form, gap and trend line. In actual combat, the common false breakthrough signals are Red Three Soldiers, Dayang Line, Reverse Cross Star and Yin Da Line.

In the futures firm trading, if it is a short-term bullish trend, the K-line with a long shadow line frequently appears in the 5-minute K-line, indicating that the short-term downward false breakthrough appears many times, and investors are prone to open positions in the wrong direction. Therefore, investors should pay attention to the 5-minute K-line to attract more or more free operation signals to avoid huge losses in operation.

There are several ways to identify the false K-line breakthrough of 5-minute futures price. For example, the signal of the false K-line breakthrough of the 5-minute futures price can basically be once or twice, and the form is generally reverse cross, big Yang line, big Yin line and so on. For real trend judgment, you can start to open futures contracts after two false breakthroughs in futures prices are completed.

When analyzing the K-line chart of futures, it should be noted that if there is insufficient pull-up power, both short-selling trends appear, indicating that investors can profit from short-selling operations; There is a positive line at the top of the false breakthrough, which is the best selling point to create an unprecedented false breakthrough.