In the K-line chart, the thin line extending upward from the entity is called the upper shadow line.
In the positive line, it is the difference between the highest price and the closing price of the day; in the negative line, it is the difference between the highest price and the opening price of the day.
Therefore, the K-line pattern with an upper shadow line can be divided into a positive line with a shadow line, a negative line with a shadow line, and a cross star.
Different forms have different judgments on long and short strength.
In the K-line chart, the thin line extending downward from the entity is called the lower shadow.
In the positive line, it is the difference between the opening price and the lowest price of the day; in the negative line, it is the difference between the closing price and the lowest price of the day.
Generally speaking, the reason for the lower shadow line is that the power of the long side is greater than the power of the short side.
After the stock opened, the stock price fell for a time due to pressure from the short side. However, due to strong buying, the stock price rebounded and closed above the low, creating a lower shadow.
The K-line pattern with lower shadow can be divided into Yang line with lower shadow, Yin line with lower shadow and cross star.
To more accurately judge the strength of the long and short parties, judgments must be made based on different forms.
Extended information: Among various methods of technical analysis, the longer "upper shadow" and "lower shadow" are one of the important reference indicators for predicting changes in market fluctuation trends.
This pattern indicates that individual stocks or the broader market may end the weak market and transition into a strong market.
The longer the lower shadow line, the stronger the reversal force.
If the K-line chart on the second trading day shows a positive line, it means that the stock has begun to reverse and rebound.
During the rapid rise of the stock index, it was blocked and fell back. If a long upper shadow line is left, it indicates that the market will enter an adjustment.
For individual stocks, the rise and fall leave a long upper shadow line. On the one hand, it shows that the dealer is testing the market, and on the other hand, it shows that the dealer is increasing the distribution.