This is called a K-line chart.K-line theory originated in Japan, is the oldest method of technical analysis, in 1750 the Japanese began to use the yin and yang candles to analyze rice futures.K-line has the characteristics of the image of the Oriental people are good at thinking, not the western deductive method of technical indicators as quantitative, so the use of the subjective consciousness still prevails. In the face of all kinds of K line combination, beginners can not help but some difficult, in fact, concentrated is the essence, such as Bruce Lee from the complexity of the move into a simple counter can be a move to defeat the enemy, the author of the vast K line method is summarized in a simple three strokes, that is, a look at the yin and yang, the second look at the size of the entity, look at the length of the third shadow line.

One, look at the yin and yang

Yin and yang on behalf of the direction of the trend, the positive line that will continue to rise, the negative line that will continue to fall. To the positive line, for example, after a period of time in the short and long struggle, closing higher than the opening indicates that the majority of the upper hand, according to Newton's Mechanics Theorem, in the absence of external forces, the price will still be running in the original direction and speed, so the positive line predicts that the next stage will continue to rise, at the very least to ensure that the next stage of the initial inertia on the uptake. Therefore, the positive line often predicts the continuation of the rise, which is also extremely consistent with the technical analysis of one of the three major assumptions of the stock price fluctuations along the trend, and this trend is also the core of the idea of technical analysis. The same can be obtained from the negative line continues to fall.

Two, look at the entity size

Entity size represents the intrinsic motivation, the larger the entity, the more obvious the upward or downward trend, and vice versa, the trend is not obvious. To the positive line, for example, its entity is higher than the opening of the part of the closing, the larger the entity of the positive line shows the power of the rise of the more sufficient, such as the quality of the larger and faster objects, its inertia impulse is also the greater the principle of physics, the entity of the positive line is larger on behalf of the intrinsic upward momentum is also the larger the rising power will be greater than the entity of the small positive line. Similarly, the larger the entity of the negative line, the more downward momentum.

Three, look at the length of the shadow line

The shadow line represents a turning signal, the longer the shadow line to a direction, the more unfavorable to the stock price to the direction of change, that is, the longer the upper shadow line, the more unfavorable to the price of the stock price, the longer the lower shadow line, the more unfavorable to the price of the stock price decline. To the upper shadow, for example, after a period of time after the struggle between the long and short, the long finally late defeat, once bitten by a snake, ten years afraid of the well rope, regardless of the K line is negative or positive, the upper shadow part of the upper gear has constituted the next stage of resistance, the probability of downward adjustment of the stock price to the majority. Similarly, the lower shadow line indicates that the probability of upward price attack is high. Full graphic tutorial: /main/viewthread.php?tid=27099