Beginners may feel a little embarrassed when facing various K-line combinations. In fact, concentration is the essence, just like Bruce Lee's tricks can be simplified to defeat the enemy. I personally summarize the vast K-line method into three simple tricks, namely, look at the yin and yang, the size of the entity, and the length of the shadow.

1. Look at the yin and yang

Yin and yang represent the trend direction. The yang line indicates that it will continue to rise, and the yin line indicates that it will continue to fall. Taking the yang line as an example, after a period of long and short struggles, 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, the yang line indicates that the next stage will continue to rise, at least it can guarantee the inertia of the next stage. Therefore, the yang line often indicates that the stock price will continue to rise, which is also in line with one of the three major assumptions in technical analysis, that the stock price fluctuates along the trend, and this kind of following the trend is also the core idea of ​​technical analysis. Similarly, the yin line continues to fall.

2. Look at the size of the entity

The size of the entity represents the internal power. The larger the entity, the more obvious the upward or downward trend, and vice versa. Taking the Yang line as an example, its entity is the part where the closing price is higher than the opening price. The larger the Yang line entity, the more powerful the upward power is. Just like the physical principle that the larger the mass and the faster the speed of an object, the greater its inertial impulse. The larger the Yang line entity, the greater its internal upward power is, and its upward power will be greater than that of a Yang line with a small entity. Similarly, the larger the Yin line entity, the more powerful the downward power is.

3. Look at the length of the shadow

The shadow represents a turning signal. The longer the shadow in one direction, the less favorable it is for the stock price to change in this direction. That is, the longer the upper shadow, the less favorable it is for the currency price to rise, and the longer the lower shadow, the less favorable it is for the stock price to fall. Take the upper shadow as an example. After a period of struggle between long and short positions, the bulls finally lost their integrity. Once bitten, one will be afraid of the rope for ten years. Regardless of whether the K line is Yin or Yang, the upper shadow has formed the upper resistance of the next stage. The probability of the currency price adjusting downward is high. Similarly, the lower shadow indicates that the probability of the stock price attacking upward is high.