I will tell you about K-line analysis. We have talked about the technical aspects before, including four parts: K-line analysis, trend analysis, form and technical indicators. The first part of
K-line analysis is actually the simplest, and everyone will think it is relatively simple. All traders or investors participating in the market think that there is anything to say about the K-line? Isn’t it just an positive line , a negative line, a negative line represents a decline, and a positive line represents a rise?
In fact, if you carefully observe and think about this single K-line, which is what we often call the candle chart, a single K-line contains 7 parts.
K line structure
Let’s first talk about the structure of the K line, how many parts are it divided into?
A complete K-line can include: highest price, lowest price, opening price, closing price , its entity, its upper shadow and its lower shadow.
If the closing price on the day is higher than the opening price, the physical part in the middle of the K-line will be blank. Of course, some expressions and expressions also have entities. If the closing price of the day is lower than the opening price, the K-line entity will list it as a different color. That is to say, when the closing price is lower than the opening price, it is a negative line. Some use black, some use white, and some use red and green. These are all different colors, but the meaning it represents is to determine its color based on the closing price and the opening price.
Of course, there is no such special situation or there is only one special one, that is, a daily limit or a word hits the daily limit : a line, its highest price is equal to the lowest price, there is no intermediate entity, and there is no upper shadow line and the lower shadow line. Of course these are all special circumstances. The basic pattern of
K line
bald positive line : lowest point open , the highest point closes to form a column, long red line or large positive line , which means that has a very strong upward trend, and the desire to rise is very strong , and there is no callback at all. Therefore, the future market often represents a situation where there is a high point.
bald negative line: is the highest point to open and close at the lowest point. There is an entity in the middle. This big negative line is a strong decline. It will usually follow the trend later, and it will fall when the market opens the next day. Therefore, when the stocks you hold appear to be bald and barefoot, you usually see that there is almost no hope before the closing, should tighten the position or clear it out as much as possible to avoid the risk of the next day.
Because it has an inertia, we said before, this is like a brake, it also has an inertia, inertia falls, inertia rises.
Highest point close: has a lower shadow line with an entity. This is a battle between bulls and bears, but it falls first and then rises, and the bulls eventually gain the upper hand, so the market is bullish in the future.
highest point opens : brings a lower shadow line downward, and finally bounces out, collecting a bald head with a lower yang. Is this a long-short battle? bears , he left a small tail, which means that there is support in this place, the lowest point is support, or near the closing price.
According to the length of its lower shadow line, you can analyze and judge the support strength of this place in a preliminary manner. The longer the lower shadow line, generally speaking, what we are talking about is the general situation of the basic form. In this state, there may be some reversals in the future market. Therefore, the bald negative line with the lower shadow line has a certain support level. Then, in turn, the lowest point opens and rises upward, with an upper shadow line.
positive line is a long-short battle, and the bulls win slightly, but being able to leave the upper shadow determines that there is a resistance above, which may continue to pull back down. This is just a conclusion on our single K-line, K-line analysis and K-line.
Of course, we say that all technical analysis and resistance can make you some fake things. You said that the bald sun is rising, but it turned out to be a fake. The next day, jumped low and opened . Is there any such thing?
This is another level. However, as for a single K-line, it often represents a meaning. We also need other conditions to be screened. Through the combination of K-lines, and through a period of trends, the reason why I have inserted so much in this explanation of this K-line is to let everyone pay attention, but it is not rigid, but what kind of situation it is the ordinary meaning, it needs to be paid attention.
bald negative line: bald negative line with a small upper shadow line. It is a long-short battle, rising first and then falling, and the short-stop trend is strong, and it is possible to continue to fall with the trend later.
Then the bottom is a positive line with both an upper shadow line and a lower shadow line, and a red line in the middle, which is a small win for long, that is, has a stronger power to go long and and the power to rise.
Then, on the other hand, the upper shadow line has a negative line in the middle of the lower shadow line. This is a short trend, that is, has a stronger shorting , so shorts are dominant at this time. If the body has more positive and negative lines at this time, the shadow is relatively short. If the shadow is longer in the middle and the entity is relatively short, if it is a positive line, then the bulls have a little advantage, but they are weak.
What does it mean to be weak? I want to rush up, but I lack strength, and the market may continue to decline in the future.
If you collect a long upper shadow and a long lower shadow, there is a small negative line entity in the middle. This is opens high and closes low and , and the bears have the upper hand. If the narrow-range side-by-side shadow and short entity fluctuate, it means that the body of the positive and negative lines of my entity is relatively short, and the shadow line is also relatively short. This is called narrow-range oscillation , which belongs to consolidation.
Then, during the narrow range of oscillation and consolidation process, if it is a positive line, it will be a slightly stronger strong judgment. If it is a negative line, it will be a weak judgment. It is possible to fall if it is soft, that's it. In fact, it represents different content.
Cross star : Cross star is divided into two types, one is called small cross star and the other is called large cross star.
small cross star is a shadow line that is smaller above and smaller below. This is a narrow consolidation, and the final closing price is almost the same as the opening price, which is called a cross. The big cross star is a long shadow line between the upper and lower stars, which shows that the bulls and bears are evenly matched.
long attacked the shorts' positions, and finally retreated and hit the shorts downwards. The shorts are the same as the rebound force of longs, and the shorts are retracted, so the longs are evenly matched, and the closing price is equal to the opening price.
The key moment is often the time point of the change of the market. The K-line of the change of the market will generally change in the future, and there will be a trend change. Therefore, when a big cross or a small cross appears, especially a big cross, the subsequent trend of the market will often reverse or be relayed.
There is another type that is whether the upper shadow is or the cross, but the upper shadow of the cross is relatively short and the lower shadow is longer. This kind of thing means that the bulls are strong and have gone down a lot, but I force it up again, and the bulls are stronger. On the contrary, for crosses with longer upper shadows and shorter lower shadows, the shorter strength is stronger.
So this cross is a very important K-line. When a K-line crossline appears, we generally need to combine other aspects to judge the trend. Whether it will change, we must be mentally prepared.
Hammerhead shaped : Some of them are simplified into a T-shaped shape, just like a capital T, one horizontally on top and one vertically on top, or an inverted T-shaped shape. What is the T-shaped on
? A T-shaped signifies a strong buying order.Going downward, after opening, it slides downward, and as a result, many people buy it and drag it up again. This is a very strong buying order, and this is a long shadow. The T-shaped selling pressure of long-lasting is heavy. You originally thought that the market would sell too much after opening up, and in the end you would have to knock you back to your original form. The selling order is heavier, which means that the short side has a heavier strength.
The other last one is what we talk about, that is, the four prices are one, and there are no seven factors we talk about. In fact, it only means love, all contain a "one", in this word.
Therefore, when observing the K-line, you must also pay attention to whether the K-line is at the top, at the bottom or in the middle? So we need to judge whether it is high-end or low-end. Therefore, you must pay attention to the sentence "K-line must be combined with position". Different K-lines have different meanings when the same K-line is in different positions. We will then explain this K-line combination. We have roughly 24 basic graphics of
K line. These 24 types are some of them we have talked about before. In fact, they are basically included in the 12 types of yin and yang that we just talked about, and then multiplied by two to be 24 forms.
Understand the content of 24 basic forms, and only by conducting basic analysis and learning of technical analysis. So do you really understand the K-line? So we must really understand it thoroughly. Either the same K-line is different from the position, so we must understand it.
Our starting point is to learn to look at the picture first, first see the K-line clearly, and then look at the meaning of the entire picture composed of the K-line through the combination of K-lines. Therefore, the starting point of technical analysis is to look at the picture. There are many types of
graphic, but they are similar. The most basic and most commonly used is the Yin and Yang candle chart, which are the Yin and Yang lines we just talked about, red and green. Then let’s talk about some of the most common candle chart combinations in stocks and gold foreign exchange futures . This is the content of our next class.
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