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Yin and Yang represent the trend direction, the positive line indicates that it will continue to rise, and the negative line indicates that it will continue to fall. Take the positive line as an example. After a period of long and short struggle, the closing price is higher than the opening price, which indicates 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. Therefore, the positive line indicates that the price will continue to rise in the next stage, and the most important thing is to ensure that the price can rise in the early stage of the next stage. Therefore, the positive line often indicates that it will continue to rise, which is in line with one of the three major assumptions in technical analysis. The stock price fluctuates along the trend, and this trend is also the core idea of technical analysis. In the same way, the negative line continued to fall< The larger the entity is, the more obvious the upward or downward trend is. On the contrary, the trend is not obvious. Take the positive line as an example. In fact, the entity is the part where the closing price is higher than the opening price. The larger the positive line entity is, the more powerful the upward momentum is. For example, the physics principle that the greater the mass and the faster the speed of the object, the greater the inertia impulse is. The larger the positive line entity is, the greater the internal upward momentum is, and the upward momentum will be greater than the small positive line entity. In the same way, the larger the Yin line entity is, the more powerful the downward trend is< The longer the shadow line is in one direction, the more unfavorable it is for the stock price to move in this direction, that is, the longer the upper shadow line is, 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. For example, after a period of long and short struggle, the bulls are finally defeated. Once bitten by a snake, they are afraid of the well rope for ten years. No matter whether the K-line is negative or positive, the upper shadow line has become the resistance of the next stage, and the probability of downward adjustment of the stock price is high. Similarly, the shadow line indicates that the probability of stock price upward attack is high.
Candlestick chart originated in the era of Tokugawa shogunate in Japan. It was used by Japanese rice market merchants to record the market and price fluctuation of rice market at that time. Later, it was introced into the stock market and futures market because of its exquisite and unique way of plotting. Investors can judge the strength of both sides and the trend of the future market according to the Yin and Yang of the entity of the K-line and the length of the upper and lower shadow lines
The K-line diagram can be said to be a perfect combination of Eastern philosophy and Western statistics, which shows the mutual transformation of the "potential" of both sides by the change of yin and Yang. However, a single K-line can only represent the battle results of the long and short sides in one day, which is not enough to reflect the continuous market changes. Only in this way can the K-line portfolio map describe in more detail the "potential" transformation of the long and short sides in a period of time. After any side breaks through the market and gains an advantage, it will form a period of up or down marketin the study of single K-line, the number of Yin-Yang lines represents the overall long short trend, while the size of K-body indicates the strength of the market internal power and trend, and the length of shadow line reflects the willingness to turn; The purpose of studying the K-line combination map is to observe the changes of the strength of the long and short forces, feel the transformation of the two sides, follow the trend, find and participate in the bottom of the situation, hold the trend of the rising market, and avoid the top risk of the end of the storm