What is the K-line? The K-line is plotted with the opening, closing, high and low prices, with rising prices as Yang and falling prices as Yin.
The continuous arrangement of a group of K lines reflects the supply and demand relationship between buyers and sellers, and the strength comparison of long and short forces.
K line is a special language, which expresses the comprehensive information of the market in a special form. Once investors understand this language, it will be of inestimable help to investment activities.
K-line can be divided into daily K-line, weekly K-line, monthly K-line, etc., and can also be subdivided into hourly K-line and half-hour K-line, etc.
The so-called daily K line is to draw a K line every day, and the weekly K line is to draw a K line every week. Then they are arranged in order of time, which forms a track to reflect the situation of the stock price and the up and down trend.
When drawing a K-line, we usually use a rectangle to represent the price between the opening and closing prices to form the entity of the K-line.
If the closing price is higher than the opening price, the entity is a positive line, showing a white hollow entity;
If the closing price is lower than the opening price, the entity is a negative line, showing a black solid entity;
If the highest price is higher than the opening price and closing price, a thin line is used to connect the opening price or closing price with the highest price, which is called the upper line, indicating the highest price reached;
If the lowest price is lower than the opening price, a thin line is also used to connect the opening or closing price to the lowest price. This line is called the shadow line, indicating the lowest price ever reached.
Some typical K-lines, or combinations of K-lines, will be repeated over and over again, and if you master them, it will greatly improve your odds.
Three, common K chart from a single K line, because of its rise and fall range and the length of the upper and lower lines, may have different market significance.
Even if the same shape of the K-line, if it appears at a high or low price, the meaning will be different.
¡ñ Figure 1 shows a large sun line, also known as bald barefoot sun line, indicating that the day’s trading closed at the highest price, and the lowest price is the day’s opening price, indicating that the currency has risen strongly.
The longer the positive line, the stronger the rally.
¡ñ FIG. 2 is a large Yin line, also known as bald bare feet Yin line, indicating that the trading of the day closed at the lowest price, and the highest price is the opening price of the day, which indicates that the currency has a strong decline, and the falling all the way is not strong support.
FIG. 3 is a positive line with a lower shadow line but not a higher shadow line, indicating that the trading price fell below the opening price after the opening of the day, but then rose and closed at the highest price. This indicates that the currency encountered resistance in the rising process, but there is strong support, indicating a strong rise and bullish future market.
¡ñ FIG. 4 is a negative line with a lower shadow line but not a higher shadow line, indicating that the trading price fell all the way after the opening of the day, but when it fell to the lowest price of the day, the buyer forced the price to rise a certain extent, which indicates that the currency in the process of decline, there is a support force, although not enough to stop the fall immediately, but it is not to be underestimated.
¡ñ Figure 5 is a positive line with an upward curve but no downward curve, indicating that the trading price rose all the way after the opening of the day, but fell at the highest price, indicating that the currency encountered strong resistance in the process of rising, failed to close at the highest price, multi-advantage has been strongly challenged, the longer the upward curve, the stronger the resistance.
¡ñ FIG. 6 is a black line with a shadow line but not a shadow line, indicating that after the opening of the day, the trading price had risen above the opening price, but under the pressure of the seller’s forces, the price was pressed below the opening price and closed at the lowest price, indicating that the currency resistance is strong, the bearish force is strong, and the future market is bearish.
¡ñ FIG. 7 is a positive line with a lower shadow, indicating that after a fierce exchange between the buyer and the seller, the multiple side won, but the short side did not close at the highest price.
In this case, if it appears after a period of rise, indicating that the strength of the short side has increased, the rally is coming to an end;
If it occurs after a period of decline, it indicates that forces are gathering and the decline is likely to be stopped.
FIG. 7 FIG. 8 is a negative line with a shadow line, indicating that the seller has a slight advantage, but the influence of multiple parties did not close at the lowest price.
If this situation is in the fall after a period of time, it shows that the multi forces in the gradual cohesion, the market may reverse;
If it appears after a period of rising, it indicates that the air force has been stronger and the rally is coming to an end.
¡ñ FIG. 9 is a positive line with a lower shadow line, but the lower shadow line is longer than the upper one, indicating that after the opening of the day, the price fell very low when faced with the pressure of the short side, but the multi-force not only made up for the decline, but also pulled the closing price to the place higher than the opening price, although it failed to close at the highest price.
This shows that the support force of multiple forces is greater than that of empty forces, and the market will continue to rise in the future. The longer the lower line is than the upper line, the greater the support force.
FIG. 9 FIG. 10 is a shadow line with a lower shadow line, but the lower shadow is longer than the upper shadow line.
As long as its entity is not very long and its decline is not very large, its meaning is basically the same as that in Figure 9, indicating that the support force is greater than the pressure, and the market is very likely to stop falling and start to rise in the afternoon.
The longer the bottom line is longer than the top line, the greater the support.
FIG. 11 is a positive line with a lower shadow line, but the upper shadow line is longer than the lower shadow line, indicating that after the opening of the day, although the multi-force will pull the price is very high, but meet the air force to suppress, the closing price is not much higher than the opening price.
This shows that the support force of multiple forces is not greater than the pressure of the empty force, the market is likely to fall, the longer the upper shadow line is longer than the lower shadow line, the greater the pressure.
FIG. 11 and FIG. 12 are a shadow line with a lower shadow line, but the upper shadow line is longer than the lower shadow line. As long as its entity is not very long and the decline is not large, its meaning is basically the same as that in FIG. 10, which indicates that the support force is not as strong as the pressure, and the market is very likely to continue to fall in the future.
¡ñ Figure 13 is a “cross star” with a lower shadow, indicating that the opening price is the same as the closing price, and the upper and lower shadow are basically the same, indicating that the support from multiple forces is about the same as the pressure from the air force.
This pattern may occur during a rise or fall, and may indicate an extension of the trend or signal a reversal.
Figure 13
