In the stock market, k-lines have various patterns, for example, k-lines with a longer lower shadow line, k-lines with a longer upper shadow line, etc. The meanings they represent are different. What does the shadow line length indicate? Does the stock have an upper shadow running? The following Hong Kong United Securities has prepared relevant content for your reference.
The long upper shadow of a stock means that in the course of the long-short competition in the market, the power of the short side is constantly increasing. The market is currently dominated by the power of the short side. However, this does not mean that individual stocks will run away when there is a long upper shadow , Investors need to consider the actual situation of individual stocks.
In different positions, investors have different investment strategies:
1. Appearing at the high level of individual stocks
When an individual stock has a long upper shadow at the high level of the individual stock after a long-term rise, it means that the multi-party strength of the individual stock has weakened, and there is no hope for the individual stock to continue to rise. It is a signal of peaking, and investors should mainly sell.
2. In the process of rising stocks
In the process of a stock rising, if a long upper shadow line appears, it is often the main force performing a washing operation, that is, the main force first buys a part of chips to raise the stock price, and finds that there are more retail investors in the market, which is not conducive to the continued rise of individual stocks in the later period. Some chips were sold at the top, causing the stock price to fall, making retail investors mistakenly believe that the main force is pulling up shipments, and then throwing out the chips in their hands to achieve the purpose of washing the market. Faced with this long upper shadow, investors can consider continuing to hold positions Do not move.
3. At the low level of individual stocks
A long upper shadow line appears at the low position of individual stocks, often the main force is conducting a trial market, that is, the main force uses the advantage of the bargaining chip to pull up individual stocks first, and finds that the upper selling pressure is heavy, so they decide not to rush to pull up, but continue to suppress The stock price causes a K-line chart with a long upper shadow line to appear on individual stocks. Faced with this long upper shadow line, investors can consider buying some bottom positions in an appropriate amount.