Description of K-line chart indicators: K-line: K-line chart is also called candle line, Yin-Yang line, bar line, Japanese line, Yin-Yang line, etc. It was originally used by Japanese rice market merchants to record market fluctuations in the rice market.
The painting method is unique and is widely used in the stock market and futures market.
It is drawn based on the opening price, highest price, lowest price, and closing price of each trading day (or each analysis period). The structure of the K-line can be divided into three parts: the upper shadow line, the lower shadow line, and the intermediate entity.
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The K-line graphically represents the increase, decrease, transformation process and actual results of the power of buyers and sellers.
After nearly a hundred years of use and improvement, K-line theory has been widely accepted by investors.
When the closing price is higher than the opening price, the real part is generally drawn in red or blank, called the "yang line". When the closing price is lower than the opening price, the real part is generally drawn in green or black, called the "yin line" (1) Yang line
(2) Yin line drawing method: With the trading time as the abscissa and the price as the ordinate, draw the daily K-line continuously to form a K-line chart. Research and judgment method: 1. Single-day K-line form The uniqueness of the K-line chart
That is, you can preliminarily judge the strength of the market by using the K-line pattern of a single day. Here are several basic K-line patterns for reference only: Dayang line (long red): The opening price is close to the lowest price of the whole day, and then the price moves all the way.
It rises to the highest price and closes, indicating that market buyers are enthusiastic and the increase is not over. Yinxian (long black): the opening price is close to the highest price of the day, and then the price drops all the way to the lowest closing price, indicating a strong market decline, especially when there is
In the high-price area, it is even more dangerous: the price fell sharply for a time, but with the support of buying forces, the price rebounded upward and closed at the highest price, which is a strong form. The shadow-yang line: the price once fell sharply but was supported by buying forces.
Support, the price rebounds upward, although the closing price is still lower than the opening price, it can also be regarded as strong.
However, when the high price zone appears, it means that the price has a callback requirement, and you should pay attention to selling the upper shadow Yang line: the price fell back after rising, and the upward trend was blocked. Although the closing price is still higher than the opening price, there is resistance above, which can be regarded as a weak upper shadow.
Yin line: The price is blocked from rising, and the upward trend is blocked. Although the closing price is still higher than the opening price, there is resistance above, which can be regarded as a weak lower cross line: The price falls sharply after the opening, but is supported at the low level, and buying is active below.
Taking the initiative and finally closing near the highest price is considered strong.
When the long lower shadow line appears in the low price zone, it is often an important reversal signal. Inverted cross line: The price encounters strong resistance at the high level after rising high, and is eventually forced to close near the opening price.
Although there is a desire to go up, the market has correction requirements and is weak.
When the inverted doji appears in the high price zone, it is often an important signal of market change. Doji: Buyers and sellers are evenly matched and the trend is stable; but in a strong market, the doji often becomes the intersection of market strength and weakness, and the market outlook may change.
One-word line: The four-price-in-one K-line reflects that market transactions are light, and it is difficult to see major changes in the market outlook; however, if it appears at the daily limit (lower limit), it indicates that the power gap between buyers and sellers is too great, and the direction of the market outlook is clear, making it difficult to reverse in the short term.
2. The two-day K-line combination is used to test the market by observing the K-line pattern for two consecutive days and considering whether the current position is a high-price area or a low-price area. The reliability is higher. The high-level reversal pattern: Yesterday, the cross line was closed, and the bulls
The upward attack was blocked; it opened higher and moved lower again the next day, and finally closed near yesterday's closing price, indicating fierce competition between long and short, and heavy selling pressure from above. You should pay close attention to the market outlook, and pay attention to shipments. Yesterday's closing cross line, the price has reversed
Signs; the next day, the market opened below yesterday's closing price, and then the price continued to decline, and finally closed on a negative line, indicating that the short side took the initiative, which mostly indicates that the market has turned downward, and it should be noted that shipments closed on the positive line yesterday, and the buyer's momentum is strong
; After opening higher the next day, many parties were unable to take advantage of the trend to attack, and fell sharply to close below yesterday's closing price, so the market weakened; this pattern appears after high consolidation, and you should beware of dealers pushing for higher shipments. Yesterday's closing of the positive line, the buyer's momentum is strong
; The next day, the upward attack was blocked again, and finally closed with a negative line, but it was still above yesterday's closing price, indicating that the battle between long and short was extremely fierce, and the bulls won.
We should pay close attention to the low reversal pattern of changes in the market outlook: Yesterday's closing of the cross line indicated that the buying below was active, and the price stopped falling and stabilized. After the opening of the next day, the price continued to rise, and finally closed with a small positive line, so the confidence of the bulls increased, and the price
A recovery is imminent.