Basic Knowledge Of Foreign Exchange K-line Chart

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What is K-line chart: K-line is also called Yin-Yang line, bar line, red-black line or candle line. In the technical analysis of the market, it has become one of the most basic methods in technical analysis, thus forming a technical analysis method with complete form and analysis theory.

According to different calculation units, K-line is generally divided into: daily K-line, weekly K-line, monthly K-line and minute K-line. Its formation depends on four data in each calculation unit, namely: opening price, highest price, lowest price, closing price. When the opening price is lower than the closing price, the K line is a positive line (generally indicated in red); when the opening price is higher than the closing price, the K line is a negative line; when the opening price is equal to the closing price, the K line is called a cross star. When the K line is a positive line, the thin line between the highest price and the closing price is called the upper shadow line, the thin line between the lowest price and the opening price is called the lower shadow line, and the columnar line between the opening price and the closing ...
... price called entity.

Since the K-line drawing method includes the four most basic data, we can judge the long and short situations during the trading time from the shape of the K-line. When the opening price is equal to the lowest price and the closing price is equal to the highest price, the K-line is called a bald Yang line, indicating a strong upward trend (Figure 1); when the opening price is equal to the highest price and the closing price is equal to the lowest price, the K-line It is called the big Yin line, which means that the exchange rate has fallen sharply (Figure 2); when the opening price is equal to the closing price, and the upper shadow line is equal to the lower shadow line, the K line is called the big cross star, which means that there is fierce battle between long and short, and the market outlook is evenly matched. It tends to change (Figure 3). When the doji appears at a relatively high position in the K-line chart, the doji is called an evening star; when the doji appears at a relatively low position in the K-line chart, the doji is called a morning star . Comprehensive K-line pattern, which represents the difference between long and short forces, with the doji as the balance point, the positive line indicates that the long side is dominant, the big positive line indicates that the long side has the strongest power, the negative line indicates that the short side has the upper hand, and the big negative line indicates the short side’s power strongest. It should be noted that when investors look at K-lines, individual K-lines are of little significance, but only when compared with previous K-lines.

The candlestick chart, also known as the daily candlestick chart, originated in Japan. The K-line is a columnar line consisting of shadow lines and entities.The part of the shadow above the entity is called the upper shadow, and the part below it is called the lower shadow. Entities are divided into two types: Yang line and Yin line, also known as red (Yang) line and black (Yin) line. A K-line record is the price change of a certain stock in one day. The K-line graphically displays the process of increase, decrease and transformation of the forces of buyers and sellers as well as the actual combat results. After nearly a hundred years of use and improvement, the K-line theory has been widely accepted by investors.

When the closing price is higher than the opening price, the real part is generally drawn in red or blank, which is called the “Yang line”; when the closing price is lower than the opening price, the real part is generally drawn in green or black, called the “Yin line”

. The map contains rich oriental philosophical thoughts, and the change of yin and yang shows the mutual transformation of the “potential” of the long and short sides.

The historical line is also known as the candle line, also known as the yin and yang candle. It is said that it originated from the rice market in the Tokugawa Shogunate era in Japan in the 18th century. The rice merchants at that time compiled this graph line in order to intuitively record the changes in rice prices. Later, it was cited by technical people to the securities market and became a theory of stock technical analysis. The K-line is a columnar line consisting of shadow lines and entities. The part of the shadow above the entity is called the upper shadow, and the part below it is called the lower shadow. Entities are divided into Yangxian and Yinxian. Among them, the shadow line shows the highest and lowest price of the day’s trading, while the body shows the opening price and closing price of the day.

A K-line chart records the price changes of a stock within a day. Arranging the daily K-lines together in chronological order constitutes the historical changes in stock prices, which is called a K-line chart.

The composition price line is composed of four price points: opening price, closing price, highest price, and lowest price. The opening price is lower than the closing price, which is called the positive line, and vice versa, it is called the negative line. The middle rectangle is called the entity, the thin line above the entity is called the upper shadow, and the thin line below the entity is called the lower shadow. K-lines can be divided into daily K-lines, weekly K-lines, and monthly K-lines. Minute lines and hourly lines are also commonly used in dynamic stock analysis software. K-line is a special market language, and different forms have different meanings.

The K-line drawing method uses the trading time as the abscissa and the price as the ordinate to continuously draw the daily K-line to form a K-line chart. The cylinders in the line chart are divided into positive lines and negative lines. Generally, red cylinders are used to indicate positive lines, and green cylinders are used to indicate negative lines. If the closing price in the time period indicated by the column is higher than the opening price, that is, the stock price rises, the column will be drawn as red, otherwise, it will be drawn as black. If the opening price is exactly equal to the closing price, a doji is formed.

The classification lines of K line can be divided into three types: positive line, negative line and same price line in terms of shape. Yangxian refers to the K-line whose closing price is higher than the opening price. Yangxian can be divided into big Yangxian, middle Yangxian and small Yangxian according to its physical size. Yinxian refers to the K-line whose closing price is lower than the opening price. Yinxian can also be divided into big Mingxian, middle Yinxian and small Yinxian according to its entity size. The same price line refers to a special form of K-line in which the closing price is equal to the opening price and both are at the same price. The same price line is often expressed in the shape of “ten” and … T’, so it is also called cross line and T word line. According to the length and presence or absence of the upper and lower shadow lines, the same price line can be divided into long cross line, cross line and T line, inverted T line, one line, etc.

In terms of time, the K-line can be divided into daily K-line, weekly K-line, monthly K-line, yearly K-line, and the trading time within a day is divided into several equal parts, such as 5-minute K-line, 15-minute K-line, 30-minute K-line K-line, 60-minute K-line, etc. These K money all have different functions. For example, the daily K-line (that is, a K-line that we often see in securities newspapers and magazines), which reflects the short-term trend of stock prices. The weekly K-line, monthly K-line, and annual K-line reflect the medium and long-term trend of stock prices. The 5-minute K-line, 15-minute K-line, 30-minute K-line, and 60-minute K-line reflect the ultra-short-term trend of stock prices. As for the weekly K-line, monthly K-line, annual K-line, and 5-minute K-line, 15-minute K-line, 30-minute K-line, and 60-minute K-line, the drawing method is the same as that of the daily K-line. The opening price, closing price, highest price, and lowest price of a period of time are drawn. For example, the weekly K-line, as long as you find the opening price on Monday, the closing price on Friday, the highest price and the lowest price in a week, you can draw it out. Now that computer stock market software is very popular, no matter what kind of K-line is very convenient, it does not need to be drawn manually. But as a person in the stock market, you must understand the principles and methods of drawing lines, which is very beneficial for studying and judging the stock market trend and buying and selling stocks. This is just as the calculator has been able to replace manual calculation very conveniently, but as a modern person must understand the general digital calculation principle, the reason of the method is the same.

Note: The fluctuation range of the extremely Yin line and the extremely Yang line is about 0.5%; the fluctuation range of the small Yin line and the small Yang line is generally 0.6-1.5%; the fluctuation range of the middle Yin line and the middle Yang line is generally 1.6-3.5%; The fluctuation range of the positive line is above 3.6%. {RM:NextPage}

The following are the meanings of several special forms of yin and yang candlesticks:

how to analyze the K line and look at yin and yang, “yin and yang represent the trend direction, the yang line indicates that it will continue to rise, and the yin line indicates that it will continue to fall. Taking the yang line as an example, after passing For a period of long-short struggle, the closing price is higher than the opening price, indicating that the bulls have the upper hand. According to Newton’s mechanics theorem, the price will still run in the original direction and speed without external force, so the Yang line indicates that the next stage will continue to rise, at least It can ensure the inertial upward rush in the initial stage of the next stage.

Therefore, the positive line often indicates a continued rise, which is also very consistent with one of the three major assumptions in technical analysis. The stock price fluctuates along the trend, and this kind of following the trend is also the core idea of ​​​​technical analysis. In the same way, the Yinxian can continue to fall.

Second, look at the size of the entity. The size of the entity represents the internal power. The larger the entity, the more obvious the upward or downward trend, and vice versa. Taking the Yang line as an example, the entity is the part whose closing price is higher than the opening price. Larger indicates that the upward momentum is stronger, just like the physical principle that the greater the mass and the faster the object, the greater its inertial momentum. The larger the Yang line entity, the greater its internal upward momentum, and its upward momentum will be The Yang line is larger than the entity. In the same way, the larger the entity of the Yin line, the greater the downward momentum. Thirdly,

look at the length of the shadow line. The shadow line represents a turning signal. The longer the shadow line in one direction, the more unfavorable it is for the stock price to move in this direction Changes, that is, the longer the upper shadow line, the more unfavorable it is for the stock price to rise, and the longer the lower shadow line is, the more unfavorable it is for the stock price to fall. The above shadow line is an example. After a period of long-short struggle, the bulls finally lost their battle at night. Once bitten by a snake, they are afraid of well ropes for ten years. No matter whether the K line is yin or yang, the upper shadow line is already It constitutes the upper resistance of the next stage, and the probability of the stock price adjusting downward is high. In the same way, the lower shadow indicates that the probability of the stock price attacking upward is high.

A brief introduction to other concepts. Bullish and bullish market bullishness refers to investors who are optimistic about the stock market and expect that the stock price will rise, so they buy stocks at low prices and sell them when the stocks rise to a certain price to obtain differential income. Generally speaking, people usually refer to a stock market in which the stock price maintains an upward trend for a long time as a bull market. The main feature of the stock price changes in the bull market is a series of big rises and small falls.

Short position and short position are investors and stock dealers who think that although the current stock price is high, they are pessimistic about the stock market prospect and expect the stock price to fall, so they sell the borrowed stock in time and buy it again when the stock price falls to a certain price. advance in order to obtain differential income. The trading method of selling first and then buying to earn the difference is called short position. People usually refer to the stock market with a long-term downward trend in stock prices as a short market, which is characterized by a series of big drops and small rises. The market fell sharply.

The so-called “bull market”, also known as the bull market, refers to a market that is generally bullish and lasts for a long time.

A warehouse is a stock market term. Once you open an account, it means that you have a warehouse ( the meaning is somewhat different in futures, stocks and foreign exchange).

In the stock market, the meanings of opening, closing and holding positions are simply put, these three mean: buying, selling and continuing to hold stocks.

Full position: buy stocks with all the funds Lighten up: sell some stocks, but not all of them All the stocks held by Li are sold, and all of them are turned into funds. Liquidated positions mean that the margin loss is exhausted, and it is still lost on the books of the futures company, that is, the customer still owes the futures company money. After a customer opened an account with 100,000 yuan, he bought multiple orders with a full position, and then caught up with the continuous price limit. The book lost a total of 110,000 yuan. Then not only his own 100,000 yuan was lost, but also owed the futures company 10,000 yuan ( Continuous plummeting caused by the inability to close the position), this is a liquidation.

Filling the position When you buy a certain stock and get caught, you can only buy the stock at a low price of this stock to cover the position (fill the position). Amortized cost window Investors sell currency products (or stocks) at low prices in order to avoid losses. This kind of investment behavior is called cutting positions, also known as cutting meat and stopping losses.

Lock-in refers to the trading risk encountered when trading stocks. For example, investors expect the stock price to rise, but the stock price has been on a downward trend after buying. This phenomenon is called long lock-in. On the contrary, investors expect the stock price to fall and sell all the shares short, but the stock price keeps rising. This phenomenon is called short lock-in. Since the stock exchange in mainland my country does not implement a short-selling system, stock short-holding does not exist in the mainland market.

shrinkage. Shrinkage means that the market transactions are extremely light, and most people agree with the market trend in the later period, and their opinions are very consistent. There are two situations here:

one is that market participants are very bearish on the market outlook, resulting in only people selling but no one buying, so the volume shrinks sharply; the second is that market participants are very optimistic about the market outlook, only people buying but no one Sell, so it shrinks sharply.

Shrinkage generally occurs in the mid-term of the trend. Everyone agrees with the market outlook. If the market declines and shrinks, you should resolutely get out of the market, shrink to a certain extent, and then buy when you start to increase the volume. Similarly, if the stock price rises and shrinks, when this happens, you should buy it resolutely, wait for a profit, wait for the stock price to rise weakly, and sell it when there is a huge amount to be released.

Heavy volume. Heavy volume generally YSHX yunshfx Yun Shang Hui Xin Limitedoccurs at the turning point of a turning point in the market trend, and the divergence of market forces on the market outlook gradually increases. When some people are firmly bearish on the market outlook, others are firmly optimistic about the market outlook. Some people are absorbing it generously. Compared with shrinking, increasing the volume has a lot of false elements. It is very simple for the main players to use the chips in their hands to knock out huge amounts of money. As long as the main force’s intentions are thoroughly analyzed, they can follow suit.

Heap amount. When the main force intends to pull up, it often makes the trading volume very beautiful. Over the past few days or weeks, the trading volume has slowly increased, and the stock price has gradually pushed up. The shape of the pile, the more beautiful the pile is, the more likely it is to produce a big market. On the contrary, the high-level piles indicate that the main force no longer wants to play and is shipping heavily.

Volume irregularities zoom in and out. This kind of situation is generally under the premise that there is no sudden good news or the market is basically stable. What Yaozhuang suddenly released a huge amount of history when the weather was calm, and then there was no sound. Shipment.