The upper shadow is the previous trading day, the high and return. Generally to a resistance platform will be so. Lower shadow on the contrary, generally support platform, will not fall down.

One, the upper shadow

In the K chart, from the entity upward extension of the thin line called the upper shadow. In a positive line, it is the difference between the highest price of the day and the closing price; in a negative line, it is the difference between the highest price of the day and the opening price.

1, passive retracement

Shares in the process of high, suddenly encountered the general market adjustment, will trigger a greater selling pressure, the dealer will follow the trend, the stock price back to the low, so in the daily K chart will leave a long upper shadow. If the volume of energy with a better, and the stock price just out of the main cost area, this kind of stock will quickly resume the rise, as long as the market stabilized a little bit, these stocks will pull up in time.

As on Friday by the news, the stock index fell sharply, and many stocks were ready to charge off after the momentum, bankers in the process of pulling up, encountered the stock index retracement, its stocks in the punch through the pressures also increased, the bankers had to retreat to the defense, the long upper shadow of the stock short-term opportunity is very great. In the market plunge, the choice of long upper shadow stocks than bald sunshine stock is better.

2, active retracement

The broad market in the smooth running process, the stock quickly pulled up, and then wave by wave lower, leaving a long upper shadow on the daily K line, this stock generally shows that the banker pulls the high handout, at least on the fast pull to a halt, and then keep handing out, and its daily K line left a long upper shadow. Due to the stock cumulative rise is larger, the banker more profit, shipment has a large profit, so the short-term adjustment pattern is obvious. Because the dealer position is relatively large, the stock price is still repeated, investors can take advantage of the rebound when the high pounds.

3, overall, the long upper shadow can be divided into two categories, one is to break through the box finishing left behind the long upper shadow; the other is a continuous high left behind the upper shadow. The former is an excellent variety of short-term intervention, the latter should be firmly abandoned. If linked to the fundamentals of the study is better, the stock market retracement passive retracement of the long upper shadow is the varieties can be involved, while the stock market is stable when the long upper shadow left behind should be excluded.

Two, the lower shadow

In the K chart, from the entity downward extension of the thin line called the lower shadow. In the positive line, it is the difference between the day's opening price and the lowest price; in the negative line, it is the difference between the day's closing price and the lowest price. Generally speaking, the reason for the lower shadow line is the formation of multiple forces greater than the short-side forces. After the opening of the stock, the stock price due to short-side suppression once down, but due to strong buying, so that the stock price back up, closed above the low point, resulting in a lower shadow line.

The K-line pattern with a lower shadow can be categorized as a positive line with a lower shadow, a negative line with a lower shadow and a doji. To more accurately determine the strength of both the long and short sides, but also to make judgments based on different patterns.

The stock is running in the course of the day, the range of exploration is very large, the closing stock price eventually returned to the opening price or higher than the opening price, at this time in the K chart will reflect a very long lower shadow. This pattern indicates that the individual stock or the market, it is possible to end the weak market, will turn into a strong market. The longer the lower shadow, the stronger the reversal force. If the second trading day of the K-line chart is positive, it means that the stock has begun to reverse the rebound.

Expanded Information

Stock is a certificate of ownership issued by a joint-stock company, which is a marketable security issued to shareholders as a certificate of ownership for the purpose of raising capital and obtaining dividends and bonuses. Each share of stock represents a basic unit of ownership of the enterprise by the shareholders. Every public company issues shares.

Each share of stock of the same class represents equal ownership of the company. The size of each shareholder's share of ownership of the company depends on the number of shares he or she holds as a proportion of the total share capital of the company. Shares are a constituent part of the capital of a joint-stock company and can be transferred, bought and sold, and are the main long-term credit instrument of the capital market, but the company cannot be required to return its capital contribution.

Shares are a kind of securities, is a joint-stock company in raising capital issued to the contributors of share certificates, on behalf of its holders (i.e., shareholders) of the joint-stock company's ownership, the purchase of shares is to buy a part of the enterprise business, that is, and the enterprise **** with the growth and development.

This ownership is a combination of rights, such as attending shareholders' meetings, voting, participating in major decisions of the company, receiving dividends or sharing the difference in dividends, etc., but also *** with the company to bear the risks associated with operational errors. Obtaining recurring income is one of the most important reasons for investors to buy stocks, and dividend payout is the main source of recurring income for stock investors.

World Stock History

Stocks have a history of nearly 400 years by 2017, which accompanied the emergence of joint-stock companies. With the expansion of business operations and the lack of capital requirements demanded a way to give the company access to large amounts of capital funds. Thus arose the emergence of a business organization in the form of a joint stock company in which shareholders *** with the capital to operate. Changes and development of the joint-stock company has produced the stock form of financing activities;

The development of stock financing has produced the demand for stock trading; stock trading demand has contributed to the formation and development of the stock market; and the development of the stock market ultimately promotes the stock financing activities and the joint-stock company's improvement and development. Stocks first appeared in capitalist countries.

The earliest joint-stock company in the world was the East India Company, which was founded in the Netherlands in 1602. After the emergence of the joint-stock company as a form of business organization, it was soon widely used by capitalist countries and became one of the important forms of business organization in capitalist countries. Along with the birth and development of the joint-stock company, the way of capitalization in the form of shares has also been developed, and the demand for the transfer of shares in the form of buying and selling transactions has arisen.

This led to the emergence and formation of the stock market, and contributed to the improvement and development of the stock market.

The shareholders of the East India Company traded their shares at the Amsterdam Stock Exchange in 1611, and later there were specialized brokers to broker the transactions. The Amsterdam Stock Exchange formed the world's first stock market, now the limited company has become one of the most basic forms of business organization;

Stocks have become an important channel and way of financing for large enterprises, but also the basic choice of investors to invest in the way; the stock market (including the issuance of shares and trading) and the bond market has become an important part of the basic content of the securities market.

China's stock history

In 1916, Sun Yat-sen and Shanghai businessman Yu Qiaqing *** with the proposed organization of the Shanghai Stock Exchange Co., Ltd. to formulate the constitution and instructions, submitted to the Ministry of Agriculture and Commerce for approval. 1920 February 1, the Shanghai Stock Exchange in the Chamber of Commerce to open the founding of the meeting on February 6, the Exchange held a board of directors, the election of Yu Qiaqing for the chairman of the board of directors. The Ministry of Agriculture and Commerce finally approved the establishment of the stock exchange in Shanghai in June 1920, the mode of operation of the Japanese Institute, but also hired a Japanese consultant. July 1, 1920, the Shanghai Stock Exchange opened, using the form of the joint-stock company, the subject matter of the transaction is divided into securities, cotton, and other 7 categories. This is the earliest stock in modern China.

China's stock issuance through the Qing government, the Beiyang government, the national government (in the middle also separated from the Wang pseudo-government), the new Chinese people's government. The coins used to purchase stocks were silver taels, silver dollars, fiat currency, Chinese Reserve Certificates, Guanjin Certificates, Golden Dollar Certificates, and Renminbi. Nowadays, the collection community groups the stocks issued in these more than a hundred years: into the Qing Dynasty, Republic of China, the People's Liberation Army, the New China, the new period, listed company stocks plus stock subscription certificates.

2014-12-05 News: the two markets huge shock, the SSE index closed at 2937.65 points, up 38.19 points, or 1.32%; SZCI closed at 10067.28 points, up 37.45 points, or 0.37%; SME index closed at 5697.71 points, down 115.38 points, or 1.98%; GEM Index Closed at 1581.91 points, down 39.94 points, down 2.46%. The two cities combined turnover of 1,074 billion, and the last trading day enlarged by more than 20%.

Ordinary shares

Ordinary shares are shares with ordinary rights in the management of the company and the distribution of earnings and property, representing the right to claim corporate earnings and residual property after satisfying all claims for repayment of debts and the requirements of preferred shareholders' rights to income and claims for compensation. Ordinary shares form the basis of a company's capital and are a basic form of stock. Stocks traded on the Shanghai and Shenzhen stock exchanges are all common stocks.

Common shareholders enjoy the following basic rights in proportion to their shareholdings:

(1) The right to participate in corporate decision-making. Common shareholders have the right to participate in general meetings of shareholders and have the right to propose, vote and elect, and may also appoint others to exercise their shareholders' rights on their behalf.

(2) The right to profit distribution. Common shareholders are entitled to receive dividends from the distribution of the company's profits. Dividends on common stock are variable and are determined by the company's profitability and its distribution policy. Common stockholders must receive a fixed dividend before preferred stockholders are entitled to dividend distribution rights.

(3) Preferred Warrants. If the company needs to expand and issue more common stock, the existing common stockholders have the right to buy a certain number of newly issued shares at a certain price below the market price according to the proportion of their shareholdings, so as to maintain the original proportion of their ownership of the enterprise.

(4) The right to distribution of surplus assets. When a company goes bankrupt or is liquidated, if the company's assets are still remaining after repayment of debts owed, the remainder will be distributed in the order of preferred shareholders first, followed by common shareholders.

Baidu Encyclopedia: Stocks