Xianren Guidance is a special form in the K-line of the spot gold price. It generally appears at the mid-term low of the major adjustment stage, and the early or mid-term of the pull-up stage. It has a strong guiding meaning for the direction of the market outlook.
It was formed because the price opened high and went high that day, and the short side began to suppress after the high, which caused the trend to fluctuate repeatedly in the intraday and fell, and finally closed with a small Yang or Xiaoyin K-line with a long upper shadow line, and It must be higher than the previous trading day, which forms the fairy guiding K-line.
The Xianren Guidance K-line has its application conditions and characteristics. When applying it with a firm offer, it is necessary to judge what period and stage it is in. It is generally used in the process of pulling up, and its safety and operability are stronger than other K-line forms. But investors should keep in mind that not all Xiaoyang or Xiaoyin lines with shadow lines are fairy guides. The best condition for using fairy guides in operations is to chase high and buy in a strong rising market. The conditions are:
1. The rising angle appears to exceed 45 degrees.
2. The position of the K-line that appears should preferably be in the previous important pressure zone.
3. Before the pattern appears, the market's profitability should not exceed 15%, and there should be a certain period of horizontal shocks.
4. The positive line of the previous day is preferably a large positive line exceeding 5%, accompanied by a relatively large trading volume in the near future.
5. After the pattern appears, it must open high and go high, or open high and go low in the following day. There must be no phenomenon of opening high and going low. main condition for success.