Record your understanding of the K-line chart
First of all, the K-line chart is an indicator that records the price trend in the market. It is drawn with real money, so every K-line chart has reference significance. Then to analyze the K-line chart, we need to analyze it from two aspects. First, analyze its market indicators, and second, analyze its public psychology. Only by understanding the psychology of the public can we be victorious in the market.
Here we take Yang Pillar as an example. The process is as follows:
one morning, for example, at 9 o'clock (it may be 8:30 in other countries, it doesn't matter, the rules can be changed at any time), the stock market starts (it can also be understood as the vegetable market opening); suppose you are Sellers of Moutai; yesterday your bottle of Moutai was priced at 100 yuan/bottle (of course, this is just an example); yesterday the Moutai manufacturer issued a notice saying that it would no longer be producing Moutai today. So when the wet market (stock market) opens, many people will flock to your stall and ask you to buy Moutai. And in your hand, you only have 100 bottles of Maotai. So someone said, boss, I'll cover all the 200 yuan/bottle. Others were unhappy and said, "Is 200 a lot? I'll pay 300." In this way, many people began to offer their own prices, which was also It's the bidding process. Of course, you are definitely not the only one selling Moutai in this wet market, there are many other stores selling it. You may be thinking in your mind, I will sell it when the price rises to 500, but some sellers think, more profit is not enough. , so I sold it for 300. So the first transaction amount came out. 300 yuan/bottle. This is also our market opening price. At the beginning, there were more Moutai liquors, and some bosses were anxious to ship the goods. Thinking that they would be sold out, they would close the shop and go play with their wives. So he said, come and buy it, I will also buy it for 200, and I will sell it for 100 (I also sell it for 100, maybe not only because I want to play with my wife, but also because I played games last night, I don’t know that the Moutai factory will not produce Moutai today. Liquor); ever since, in today's market, Moutai has also been sold for 100 yuan, which is the lowest price in the market. By the time the sun sets and dusk, all the shopkeepers have sold out of their Maotai liquor, but you are smart enough to still have two bottles in your hand. Just slap your thigh, it’s 1999 yuan/bottle. Many people gritted their teeth and bought it when they saw it was out of stock. Ever since, today the highest price of Moutai was sold to 1,999 yuan by you. And all this process is recorded on the K line. The entity of the K line records the opening price and closing price, and the shadow line records the highest price and lowest price.
Here we proceed to the inferential evolution. In the stock market, as the market opens, thousands of people will flood into a certain stock, acting as buyers and sellers. The seller will sell the stock in his hand, and the price will refer to the closing price of the previous day (someone here will say, why should I refer to the closing price of the previous day? I just want to sell one million shares, can't I?); that's for sure Yes, but no fool would buy it. So you definitely can’t sell it. Just like when you go to buy steamed buns. Suddenly one day, the steamed buns sold for 10 yuan each. You will definitely say: "Damn it, wasn't it 50 cents yesterday? Why is it so expensive today? It slipped away"; so the reference price is a psychological manifestation of the market. People generally refer to the price of a shorter period such as yesterday or the day before yesterday. Only when psychological expectations are met will transactions occur. You know, there is a lot of cash in the stock market, hundreds of millions, so there are many buyers and sellers. The stock market's trading system will match these transactions and allow cash to flow. After understanding these, let us next analyze the market public psychology reflected by the K-line.
Before analyzing psychology, we need to reach a few consensus points:
1. The market is normal, and there is no such thing as manipulating the stock market (for example, there is an old boy who secretly sells 1 million per share, and then secretly buys this situation, driving up prices)
2. There are no institutions or other bookmakers taking
over. 3. The market is stable, and there are no negative or favorable policy factors.
OK, let’s start analyzing people’s psychology. There are actually 4 indicators and 2 aspects of psychology.
The 4 indicators refer to the highest price, lowest price, opening price, and closing price
, which refer to the sellers and buyers.
1 The highest price is very high (there is no such thing as a very low highest price, and there is no need to say that if the highest price is not high), it means that a large number of people are willing to spend a high price to buy this stock. The psychology of it being bullish in the short/long term. In the same way, if the lowest price is very low, it means that a large number of sellers are not optimistic about the stock and want to cash out and leave quickly. Then we have to make some predictions about the subsequent market (all analyzes are predictions, and there is no use in predictive analysis); therefore, the distance between the highest price and the lowest price is the normal level of the market (opening price and closing price) Generally speaking, the greater the amplitude, it means that there is a large cognitive gap in the psychology of sellers and buyers. The higher the highest price, the more bulls believe that the stock will rise, and the stock will most likely rise in the subsequent trend. The lower the lowest price, it means that a large number of sellers think that the stock is no longer good and hurry up to sell it. In the subsequent trend, there is a high probability that it will continue to fall.
2. Comparison of closing price and opening price. This is relatively simple. If closing price > opening price, people are still optimistic about the stock and will follow up. On the contrary, bearish.
This is a psychological game. Putting the two together, you can analyze the market's buying and selling sentiment. Next, let's analyze it with examples.
Here, I selected a K-line chart, and let’s analyze the public’s psychological state on the five K-line charts I drew arrows on. Starting from the left
1, this K-line chart has a highest price and a lowest price, but the lowest price is basically the same as the closing price. So what is the process of forming this K-line chart? First, the stock market opens. The opening price follows yesterday's closing price, buying and selling begins, and the price begins to fluctuate. During a certain period of time, there are more buyers, which continues to push up the price. Supply and demand are unbalanced. As time goes by, the buyers are exhausted, and the buyer's power disappears. Weak, sellers are still strong. The market is not optimistic about the stock's subsequent trend. The closing price is lower than the opening price, and the stock market is over. Summary: Yin line, the air force is strong, bulls exist, but the subsequent market is not optimistic and bearish.
2 This K-line chart has the highest price and the lowest price. But the highest price and closing price are basically the same. So how is this K-line chart formed? First of all, the opening price is yesterday's closing price, and the price fluctuates. During a certain period of time, sellers ship goods and buyers buy goods. Because buyers are stronger, the closing price is greater than the opening price. The stock market is bullish, but the length of the real column and the lower negative line are almost the same. , indicating that the game between bulls and shorts is similar, and the follow-up is bullish. In summary, the positive line has a high probability of subsequent rise, and the bulls have strong power.
3 In this K-line chart, the highest price and lowest price are very obvious. The process goes like this. The opening price is yesterday's closing price. The game between short and long continues. At the close of the market, the closing price was greater than the opening price. According to the ratio of the negative line to the physical column, the market showed a wait-and-see attitude. The follow-up is not obvious.
4 In this K-line chart, the opening price is yesterday's closing price. The air force is not strong, no one is willing to sell, the willingness to buy a house is strong, and the subsequent trend is bullish.
5 In this K-line chart, the highest price, lowest price, opening price and closing price are unified. Explain that when the opening price is reached, no one is willing to pay a high price to buy. And sellers continue to sell at low prices, and as many as there are sellers, there are as many buyers as there are sellers. The market is not optimistic about this stock in the future, and it is likely to be bearish in the future.
Summary: Through the formation process of the K-line chart, the buying and selling psychology of the market can be fed back. The more bizarre the K-line chart is, the more it can reflect the trading mentality in the market.