What do you think of Ethereum's K-line diagram
K-line chart is also called yin-yang chart. Through the K-line chart, we can completely record the market performance of a day or a certain period. After a period of time, the stock price will form a special area or form on the chart, and different forms show different meanings
the view of K-line chart: K-line chart contains four data, namely opening price, highest price, lowest price and closing price. All k-lines are around these four data to reflect the general situation and price information
extended data:
K-line chart this chart originated from budenafa City, Japan. It was used by businessmen in the Japanese tea market to record the tea market and price fluctuations at that time. Later, it was introced to the stock market and futures market because of its exquisite and unique way of plotting. This kind of chart analysis method is particularly popular in China and even in Southeast Asia. Because the chart drawn in this way looks like a candle, and these candles are black and white, it is also called yin-yang chart
through the K-line chart, we can completely record the daily or a certain period of market performance. After a period of time, the stock price will form a special area or form on the chart, and different forms show different meanings. We can find out some regular things from these morphological changes. The shape of K-line diagram can be divided into reverse shape, finishing shape, gap and trend line
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1. The basic meaning of K-line
K-line, also known as Yin Yang line, stick line, red black line or candle line, originated from the rice market trading in Japan's Tokugawa Shogunate era (1603-1867). After more than 200 years of evolution, it has formed a technical analysis method with complete form and analysis theory< Second, the application of the basic pattern of K-line
from the shape of the daily K-line chart, we can make the following general judgments:
1. 2. A big negative line means a big drop. 3. Fighting in long and short, falling first and then rising, and the bull is strong. 4. Long short battle, short slightly dominant, but get support after the fall, the future may rebound. 5. In the battle of long and short, the long is slightly better than the long, but it will encounter pressure after rising, and it may fall in the future. 6. Long short fighting, first up and then down, short potential is strong. 7. Backward signal. If it appears after a big rise, it may fall in the future; If it appears after a big drop, it may rebound in the future. 8. Reversal trial. If it appears after a big drop, the market may rebound; If it appears after a big rise, we should keep calm and pay close attention to the future changes. 9. It means that bulls have the upper hand, but they are weak and may fall in the future. 10. First up and then down, with bears gaining the upper hand. 11. Commonly known as the great cross, it means that there is a fierce battle between the air and the air, and there is a close balance between the two sides, which often changes in the future. 12. Small cross means narrow consolidation
it should be noted that the significance of a single K-line is not great, but should be compared with the K-line of the previous days
considering the K-line type, the multi air forces represented by K-line are different in size; With the cross line as the equilibrium point, ten represents the strongest strength of all parties (the weakest strength of the air side), and one represents the strongest strength of the air side (the weakest strength of all parties)
Third, the basic types and application of the K-line in the medium and long term
as mentioned above, how can we use the K-line to judge the stock price changes in the medium and long term? First of all, this paper introces several basic types of K-wires connected together
(1) after a period of time, there will be three vertices or bottom points in a price range, but the second vertex or bottom point is higher or lower than the other two vertices or bottom points. As shown in Figure 10-3, it is the head shoulder top with one top and two shoulders; Or figure 10-4, it is a head shoulder bottom type with one bottom and two shoulders. However, sometimes there may be more than three vertices or base points; If there is one or two heads (or bottom), two left shoulders and right shoulders, it is called compound shoulder type (or compound head shoulder bottom)< (2) double top
double top is when a certain stock rises rapidly to a certain price, e to the selling pressure of short-term profit taking, the trading volume expands, and the stock price falls from the peak, and then the trading volume graally shrinks with the decline of the stock price. After the stock price stops falling, it starts to rise again. When it rises to the price near the previous peak, the trading volume increases again, However, the trading volume is less than that created by the previous peak. The selling pressure reappeared, and the stock price fell again and broke the neck line, forming a downward trend. The neck line is a parallel line drawn at the low point between the two peaks. As the double top breaks through the neck line after completion, it can be seen from the figure that it is very similar to the English letter "m", so the double top can also be called "m" head< (3) double bottom
is the reverse type of double top, forming "W" type; That is to say, the stock price rebounds when it falls to a certain price, but the buyer's strength still fails to concentrate, the stock price softens again, and then the decline tends to ease, and gets support near the previous low price. At this time, the buyer's strength strengthens, and the stock price begins to show a stronger trend
it should be noted that when the double top (or double bottom) appears, it may not always show a reverse trend, sometimes it will still show a consolidation type. After the completion of the double top or double bottom, the effective breakthrough can be considered only when the breaking range of the neck line exceeds 3% of the price of the stock market. Otherwise, it may still be a spiral consolidation or even a reversal of the trend.
