K-line knowledge

Look at Yin and Yang

Yin and Yang represent the trend direction. Yang lines indicate that they will continue to rise, while Yin lines indicate that they will continue to fall.

Taking Yang lines as an example, after 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, the price will continue to run in the original direction and speed without external forces. Therefore, Yang lines indicate that the next stage will continue to rise, at least it can guarantee the inertia of the initial stage of the next stage.

Therefore, Yang lines often indicate continued rise, which is also in line with one of the three major assumptions in technical analysis, that prices fluctuate along the trend, and this trend is also the core idea of ​​technical analysis.

Similarly, Yin lines continue to fall.

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