K line
Introduction of K- line types:
If the types of K lines are divided by time period, there are daily K lines, weekly K lines, monthly K lines, annual K lines, hour K lines and minute K lines. The daily K-line is a K-line drawn with the opening price, closing price, highest price and lowest price of a day, which have been discussed in the previous two sections.
Weekly K-line is a K-line chart characterized by the opening price on Monday, the closing price on Friday, the highest price of the week, and the lowest price of the week. The monthly K-line is a K-line chart drawn by the opening price of the first trading day of the month, the closing price of the last trading day, and the highest and lowest prices of the month. The annual K-line is a K-line chart drawn by the opening price of the first trading day of the year, the closing price of the last trading day, and the highest and lowest prices throughout the year.
If it is classified in the form of K-line, there are roughly a dozen categories below, and readers can take a closer look.
1. Bald head and bare feet Yang line, as shown in Figure 1-3, it has neither upper shadow line nor lower shadow line, and it has an obvious indication effect on the market. If it appears in the early stage of the market start, it will be used by the dealer to build a position with a huge amount. A signal is a good buying point; if it appears in the late stage of repeated stock price rises, with huge volume, it is usually a clear sign of the dealer's shipment. Investors can sell on rallies on the day or the next day when the line appears.
Figure 1-3 Bald head and bare feet
2. Barefoot Yangxian, as shown in Figure 1-4, only the upper shadow line does not have the lower shadow line. It is a good buy signal in the initial stage of the market start; in the later stage of the market's repeated rise, it is a performance that is impeded by the high rise. To prevent the stock price from falling.
Figure 1-4 Barefoot sun wire
3. Bald Yangxian, as shown in Figure 1-5, only the lower shadow line does not have the upper shadow line, the trend is stronger than the barefoot Yang line, and the upward attack is stronger. In the initial stage of the market start, the market usually stops falling and stabilizes and will rise sharply. At the end of the market’s repeated rise, there are signs that market makers are attempting to ship. Investors must pay attention to the trend of the market or individual stocks in the next few days to determine whether to enter or exit.
Figure 1-5 Bald sun
4. The big Yangxian refers to the large body of the Yangxian, with upper and lower shadows, and its indication effect on the market is similar to the previous three types of Yangxian, see Figure 1-6.
Figure 1-6 Dayang Line
5. The small yang line refers to a very small yang line, which has both upper and lower shadow lines, but the upper and lower shadow lines are not long, as shown in Figure 1-7. If the small Yangxian appears at the end of the market's repeated decline, there is a signal to stop the decline and stabilize; if it appears in the late period of the market's repeated rise, it is a sign of weakness and the end of the market; if you encounter the small Yangxian on the way up or down, It has no significance.
Figure 1-7 Xiaoyang Line
6. Star-shaped Yangxian, also called Xiaoyangxing and Yangxing, refers to the small Yangxian with very small entities, and the upper and lower shadow lines are also extremely short, as shown in Figure 1-8. The shortening of the K-line is a form of convergence, reflecting the buyer’s hesitation and stalemate. If it appears in the middle of the stock price rise and fall, it has no meaning; but if it appears at the high or low swing, it is an important change. Disk precursor.
Figure 1-8 Star-shaped sun line
7. The long lower shadow K-line is also called the upper hanging line and the hammer head line. The K-line is small in entity, but has a long lower shadow line, both yin and yang, see Figure 1-9. If it appears at a high position, it is a classic signal of peaking, which is called a hanging line; while it appears at a low position, it is an important signal that the bottom is rebounding and the market is about to rise, called the hammer line.
Figure 1-9 Long lower shadow candlestick
8. The long upper shadow K-line is also called shooting star and meteor. The entity of the K-line is small, but there is a long upper shadow line, which can be both yin and yang. See Figure 1-10. If it appears at a high band, it is a signal that the price is blocked and the stock price is about to fall, it is called a meteor; if it appears at a low band, it is an important signal that stops falling and stabilizes, the main force is going to test the market, and the market is about to start. As the shooting star.
Figure 1-10 Long upper shadow candlestick
9. Bald head and bare feet Yin line, neither upper shadow line nor lower shadow line, see Figure 1-11. If it appears in the high position of the band, it is called Changyin Tombstone, which is a sign that the main force will release the goods all the way after the main force has opened. It is an obvious peak signal; if it occurs in the low position, it is a common method for the main force to create fraud lines and defraud individual investors. The market is about to change. it is good.
Figure 1-11 Bald head and bare feet Yin line
10. Shaved Yinxian, only the lower shadow line, there is no upper shadow line, generally represents a bearish trend, but the situation is slightly resistant, see Figure 1-12.
Figure 1-12 Shaved Yin Line
11. Barefoot Yinxian, only the upper shadow line, no lower shadow line, see Figure 1-13, this kind of K line is more pessimistic than the shaved Yinxian, the market outlook is mainly bearish.
Figure 1-13 Barefoot Yin Wire
12. The big Yinxian refers to a kind of K-line that has a very large Yinxian entity, with both upper and lower shadows. Usually, the market outlook is bearish, see Figure 1-14.
Figure 1-14 Large Yinxian
13. Small Yinxian refers to the smaller K-line of Yinxian entity, with not too long upper and lower shadow lines, as shown in Figure 1-15. If it appears at the high of the band, it is a signal that the upside is blocked and the band is peaking; if it appears at the low of the band, it is a signal that the short kinetic energy is weakening and the market is about to become stronger.
Figure 1-15 Small Yinxian
14. Star-shaped Yinxian, also known as Little Yinxing and Yinxing, is a very small physical Yinxian with not too long upper and lower shadows, as shown in Figure 1-16. This line is the convergent form of the small Yinxian, which has the same meaning as the small Yinxian, but has a stronger turning direction than the small Yinxian.
Figure 1-16 Star-shaped negative line
15. The one- word line is the "four-value one line", that is, the four values of the opening price, the highest price, the lowest price, and the closing price are the same. See Figure 1-17. The positive line is the daily limit and the negative line is the down limit. In an uptrend, this is a manifestation of the extremely strong stocks; and in a downtrend, this is a manifestation of the extremely weak stocks.
Figure 1-17 One word line
16. The T word line is the K line where the opening price, the highest price, and the closing price have the same value. It has a long lower shadow line, which can be yin or yang, as shown in Figure 1-18. At the high band, it is a signal that the main trial shipments are peaking; while at the low band, it is a signal that the bottom is going up and the stock price trend will improve.
Figure 1-18 T word line
17. The inverted T word line is the K line with the same value of the opening price, closing price, and lowest price, with a long upper shadow line, which can be yin or yang, as shown in Figure 1-19. Being at a high position is an important signal that the stock price is blocked from the upside and is about to peak; while being at a low position is an important signal that the main force is going to attack the test market and the market is about to start.
Figure 1-19 Inverted T word line
18. Doji is the K line with the same opening price and closing price and similar lengths of upper and lower shadow lines, as shown in Figure 1-20. The doji is a manifestation of the K-line convergence to the extreme. The long-short stalemate reaches the equilibrium stage, which is an important symbolic K-line that the market is about to change. If it occurs after repeated rises, the trend is mainly bearish; if it occurs after repeated declines, the trend is mainly bullish.
Figure 1-20 Doji
The above are the types of K-lines. For these K-lines, investors need to be familiar with their forms and their connotations. It would be better if they could see the changes in investment psychology behind them.
Trader's words:
The reason why the stock market is difficult to predict is that the stock market is actually a reflection of investor psychology. Because investor psychology is unpredictable, the stock market is also difficult to predict. However, in this regard, K-line analysis has certain advantages because it is relatively macro and basic. In terms of theoretical analysis methods, it is more direct, reflecting the market capital game, that is, the actual situation of investors' psychological changes.
