The information contained in K-lines is extremely rich. In terms of a single K-line, the upper shadow line and the entity of the negative line indicate the downward pressure of the share price, while the entity of the positive line indicates the upward force of the share price; the upper shadow line and the entity are longer to indicate the downward momentum of the share price, while the lower shadow line and the entity of the positive line are longer to indicate the upward momentum of the share price. If multiple K-lines are combined together according to different rules, a different K-line combination will be formed. Such a K-line pattern contains more information. For example, in the upward trend out of the dark clouds cover the top of the K-line combination indicates that the potential has been exhausted, investors should leave the field as soon as possible; in the downward trend of the first light K-line combination, indicating that the stock price may see the bottom back up, investors should not miss the opportunity to build a low position. As can be seen, a variety of K-line pattern is it contains information, constantly to people to buy and sell the signal, for investors to see the trend, the right to buy and sell stocks can provide great help.
The names and meanings of common K lines.
From the K-line chart, investors can capture the changes in the comparison of the power of the two main forces of buying and selling. The K-line theory has been developed over the years and has become a relatively complete theory of stock market analysis. According to this theory, when a certain typical graph appears, the future rise or fall of the stock price can be predicted more accurately. For example, the general positive line indicates that the market buying power is stronger, selling power is weaker; the line indicates that the market selling power is stronger, buying power is weaker, and the longer the upper shadow line, the stronger the selling pressure; the longer the lower shadow line, the stronger the market taking power.
The bald positive line shows that the stock market is up, the party has an absolute advantage, controlling the situation, because the size of the entity of the positive line is different, and can be divided into large positive line, medium positive, small positive line, showing the different conditions of the strong stock market.
