How to understand the K-line chart?

Connect the opening price and closing price into a rectangular column, that is, the entity;

Connect the highest price and closing price into a line, that is, the upper shadow line;

Connect the opening price and the lowest price into a line, that is, the lower shadow line;

The entity plus the lower shadow line is the K-line. Through this K-line, we can roughly grasp the price fluctuation of stock A on that day: Since the closing price is higher than the opening price, this is a positive line.

The shape of the K-line is ever-changing, so how do we use the K-line 5/5 well? It is recommended that the beginners grasp the following four points:

First, look at the yin and yang. To put it bluntly, looking at the yin and yang is to see whether the stock price has risen or not, and whether it will rise in the future. A basic rule of the stock market is that the stock price moves according to the trend, so the positive line indicates that the stock price may rise next, and the negative line indicates that the stock price may fall next.

Secondly, look at the entity. The entity is the difference between the closing price and the opening price, which is the actual rise and fall of the stock price. The longer the entity, the more violent the rise or fall, and the greater the probability that the stock price will rise or fall further.

Third, look at the shadow line. The longer the upper shadow line, the greater the probability that the stock price will fall next, and the longer the lower shadow line, the greater the probability that the stock price will rise next. For example, a certain stock rose by 10% in one day, but only rose by 1% at the close. The upper shadow line is very long, indicating that many people sold after the daily limit, so the stock price is likely to fall next.

Finally, the observation period should be extended. K-line can be divided into daily K, weekly K, monthly K, quarterly K, annual K, etc. according to the time period. The shorter the cycle, the stronger the randomness of the stock price fluctuation, and the longer the cycle, the more obvious the trend of the stock price fluctuation. Therefore, if you only look at short-term K-line such as daily K, it will not only waste time, but also make it difficult to make money. #美联储何时降息？ #美国政府转移BTC #美国以太坊现货ETF开始交易 $BTC