How to analyze the K-line chart

How to analyze the K-line chart

K-line charts are based in Japan. At that time, M-market traders recorded the market and price fluctuations of M-market. After that, they were introduced to the stock market and futures market due to their delicate and unique logo-painting methods. Currently, this type of chart analysis method is particularly popular in China and across Southeast Asia. The chart drawn in this way is like a candle, and the candle has black and white points. Therefore, it is also called a yin/yang line chart. Through the K-line chart, we can completely record the daily or certain cycle of the market performance, after a period of inventory, the stock price is formed on the chart
 
 
A special area or form. Different Forms indicate different meanings. We can find out some regular things from these morphological changes. The K-line chart form can be divided into reverse forms, sorting forms, gaps and trend lines. from section 3 of this chapter, we will analyze these forms one by one.

I. Drawing Method

First, we can find the highest and lowest prices for the day or a period, and connect them vertically. Then, we can find the opening and closing prices for the day or a period, connect these two prices into a long and long column. If the ending price of the day or period is higher than the opening price (that is, the opening price is higher), we will use red to indicate it, or leave it white on the column. This column is called a "yangxian ". If the market price for the current day or for a period is lower than the market price (that is, the market price for a period of time is higher), we will show it in blue, or we will apply black to the column, this column is "overcast line.

Ii. Advantages

Able to thoroughly observe the real changes in the market. We can see the trend of stock price (or big market) in the K-line chart, as well as the fluctuations in the daily market conditions.

Iii. Disadvantages

(1) The rendering method is complex and the most difficult to create among the many trend charts.

(2) There are many changes in the yin and yang lines. For Beginners, it is quite difficult to master the analysis. It is not as easy as the column chart.

Iv. analysis significance

Due to the wide variety of changes in the "Yin and Yang line", the "Yin line" and the "Yang line" have many differences in size. Therefore, the significance of the analysis is necessary.

Before discussing the meaning of the "Yin/yang line" analysis, let us know the name of each part of the "Yin/yang line.

Take the yangxian line as an example. The part between the highest and the ending price is called "shadow". The part between the opening price and the ending price is called "entity", and the opening price and the lowest price is called "shadow ".

1. Long red line or Dayang line

This chart indicates that the highest price is the same as the closing price, and the lowest price is the same as the opening price. There is no online or offline. From the opening, the buyer actively attacked, and there may also be a fight between the buyer and the seller, but the buyer played its best until the close. The buyer always prevails, making the price rise until the close. It indicates a strong upward trend, the stock market shows a climax, and buyers enter the market frantically, with no price limit. Those who hold stocks are reluctant to sell out because they are eager to buy goods, resulting in supply shortage.

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2. Long black line or big line

This chart indicates that the highest price is the same as the opening price, and the lowest price is the same as the closing price. There is no online or offline. From the very beginning, the seller prevails. The stock market is at a low tide. Those who hold the stock are not limited to the price and throw, causing panic. The market fell one by one until the close and price fell, indicating a strong decline.

3. First drop, then increase

This is a red object with a shadow. The highest price is the same as the closing price. After the opening, the price drops because the sales volume is sufficient. However, it was supported by the buyer at a low price, and the seller was frustrated. The price was pushed up to the opening price and Rose all the way until the close, closing at the highest price. In general, the buyer has a great deal of strength in the case of first-to-second increase. However, the physical part is different from the offline part, and the strength of the buyer and the seller is different.

The entity is longer than the shadow. The price has not fallen much, that is, it is supported by the buyer and the price is pushed up. After the opening of the opening ceremony, we made great strides and the buyer was very powerful.

The entity is the same as the shadow. the buyer and the seller have a fierce battle, but in general, the buyer is dominant and advantageous to the buyer.

The entity is shorter than the shadow. Buyers and sellers are at a low price. In case of buyer support, the price will be pushed up gradually. However, it can be found that the above entity is relatively small, indicating that the buyer's advantage is not very large. If the seller tries to counterattack the next day, the buyer's entity will be easily attacked.

4. Decline offset type

This is a kind of black entity with a shadow, and the opening price is the highest price. When a disk is opened, the seller's strength is very high, and the price is falling, but it is supported by the buyer at a low price. The market outlook may rebound. The length of the entity and the shadow can be divided into three types:

(1) the physical part is relatively larger than the long selling pressure of the Shadow Line. When a disk is opened, it is under great pressure. At the low point, it is met with the buyer's resistance. The buyer and the seller have a fierce battle, and the film part is short, it indicates that the buyer has not pushed much of the price. In general, the seller has a relatively large advantage.

(2) The same length of the entity and the video line indicates that after the seller presses down the price, the buyer's resistance is also increasing. However, it can be seen that the seller is still dominant.

(3) the seller of the real part lowers the price all the way down than the short video line. In terms of low prices, the seller gradually pushes up the price despite the strong resistance of the buyer and organizes a counterattack, however, we can see that the seller has only a small advantage. In the market outlook, it is very likely that the buyer will perform a full counterattack to eat all the small and Black Entities.

5. Rising Resistance

This is a red object with a shadow. The lowest price is when you open the service. When a disk was opened, the buyer was strong and the price was pushed along the way. However, the rise of the stock price was blocked due to pressure on the seller at the high price. The result of the confrontation between the seller and the buyer is a little better than that between the buyer and the seller. Observe the length of the object and the shadow.

The red object is longer than the shadow line, indicating that the buyer encounters resistance at a high price, and some Bulls make a profit. However, the buyer is still the dominant force in the market, and the market outlook continues to be bullish.

The entity is the same as the movie line. The buyer pushes the price up, but the seller's pressure is also increasing. As a result of the two battles, the seller reduced the price to half, although the buyer was dominant. But it is obviously not as advantageous as it is.

The entity is shorter than the shadow. In case of pressure from the seller at a high price and comprehensive counterattack from the seller, the buyer was severely tested. Most short-term investors have made a profit, and the seller has withdrawn most of the lost land after the day's battle. The buyer's small bastion (entity part) will soon be wiped out. If such a key line appears in a high-price zone, the market outlook will fall.

6. First increase and then decrease

This is a black object with a shadow. The closing price is the lowest price. When a disk is opened, the buyer and the seller are at war. Buyers have the upper hand and prices have risen all the way. However, in the face of selling pressure at a high price, the seller organized a reverse attack, and the buyer was defeated. Finally, the seller closed at the lowest price. The seller took the lead and made full use of the strength to bring the buyer into the dilemma of "locking.

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The following three conditions are still available:

(1) The Black entity is longer than the Shadow Line, indicating that the buyer has not pushed much of the price, and immediately encounters a strong counterattack from the seller. After the price is squashed, the buyer will win the attack, let's push down the price for a large period. The seller is particularly powerful, and the situation is favorable to the seller.

(2) The buyer pushes up the price when the black entity and the video album are equal. However, the seller is more powerful and takes the initiative. The seller has advantages.

(3) Although the seller of the Black entity has a lower price than the short video clip, the seller has fewer advantages. When the seller enters the market tomorrow, the buyer's power may be attacked again, and the black entity may be attacked.

7. Reverse Testing

This is a red object with online and offline shadows. After the opening, the price fell. When the buyer supported it, the buyer increased after the two sides fought and the price pushed along the way. Before the close, some buyers made a profit and closed at the highest price. This is a reverse signal. If it appears after the surge, it indicates a high-end shock. If the transaction volume increases, the market outlook may fall. If this happens after a big drop, the market outlook may rebound. The differences between the upper and lower lines and entities can be divided into multiple situations:

(1) The online and offline pictures are longer than the offline red objects. They are also divided into two parts: the online picture is longer than the red object, indicating that the buyer's strength is frustrated. The red entity is longer than the shadow part, indicating that the buyer is still dominant despite setbacks. (Www.17909.com)

(2) The Shadow is longer than the red entity of the shadow. It can also be divided into: the red entity is longer than the shadow part, indicating that the buyer is still active despite setbacks. The photo and video lines are longer than the red ones, indicating that the buyer still needs to be tested.

8. Pop-up testing

This is a black entity with online and offline shadows. During the transaction process, the stock price sometimes becomes competitive after the opening. As the strength of the seller increases, the buyer is reluctant to chase high prices, the seller gradually took the initiative to reverse the stock price. The stock price fell after the opening and trading. In the case of low-price support from the buyer, the sales volume becomes stronger, so it will not close at the lowest price. Sometimes the stock price is closed below the opening price in the first half, and the buying intention in the second half is enhanced. The stock price is back to the top of the opening price, and the seller is dominant before the closing price, and the price is closed below the opening price. This is also a reversal test. If it appears after the plunge, it indicates low-end undertaking, and the market may rebound. The market outlook may fall if it appears after the surge.

9. Cross

This is a type of image with only the upper and lower lines and no entity. The opening price is the closing price, indicating that the stock price is higher than or lower than the opening price, but the closing price is equal to the opening price. The buyer and the seller are almost evenly matched.

The longer the shadow goes, the heavier the selling pressure. The longer the shadow, the greater the buyer. The upper and lower lines look like a long cross line, which can be called a transit line. This means a reversal at a high or low price.

10. "Images"

The opening and closing prices are the same. The transactions on the current day are all at the price above the opening price, and close at the lowest price (that is, the opening price) of the current day, indicating that although the buyer is strong, the seller is stronger, and the buyer is unable to rise. In general, the seller is slightly dominant, for example, in a high-price zone, the market may fall.

The "T" figure is also called the multi-win line. The opening and closing prices are the same. The trading on the current day is sold at the price below the opening price, and the closing price is the highest price on the current day (that is, the opening price. Although the seller is strong, the buyer is more powerful and the situation is favorable to the buyer. If the seller is in a low-price zone, the market will rise.

11. "1" graphics

This relatively shape is not common, that is, the opening price, closing price, the highest price, the lowest price at the same price. Only when the transaction is very deserted, there is only one price for the whole-day transaction. Cold stocks are prone to such situations.