Is the K-line judgment accurate?

Hello, can K-line judge whether the rise and fall of stock price is relative? Any technical analysis is based on past data to predict future trends and pays attention to probability. The accuracy of K-line analysis also depends on the nature of the market. Under different market properties, the accuracy of K-line judgment on the market is different. K-line analysis is not isolated from other technical analysis, but also combined with other technologies to judge the market.

First, the composition of the K line?

It is based on the opening price, the highest price, the lowest price and the closing price of each analysis period. Take the daily K-line as an example, first determine the opening price and closing price, and draw the part between them into a rectangular entity. If the closing price is higher than the opening price, the K line is called the positive line, which is represented by a hollow entity. On the contrary, it is called a negative line and is represented by a black entity or a white entity. Many softwares can use colored entities to represent negative and positive lines. In the domestic stock and futures markets, red is usually used to represent the positive line and green is used to represent the negative line. However, investors who participate in European and American stock and foreign exchange markets should pay attention to the fact that in these markets, green is usually used for the positive line and red for the negative line, which is just the opposite of domestic habits. ) Connect the highest price and the lowest price with the entity with thin lines. The line between the highest price and the entity is called the upper shadow line, and the line between the lowest price and the entity is called the lower shadow line.

Similarly, if you draw a K-line chart with one minute's price data, it is called a one-minute K-line. Draw a K-line chart with one month's data, which is called a monthly K-line chart. The drawing cycle can be flexibly selected as required, and K-lines with a cycle of 2 minutes and 3 minutes can also be seen in some professional drawing software. K-line is a special market language, and different forms have different meanings.

Second, the relationship between the K-line chart and technical indicators?

1. Although the analysis of indicators and K-line chart is an essential process of trading, it can only be used as a reference tool for technical analysis. According to a classic K-line chart or a commonly used indicator, the conclusion may not be valid, and the specific analysis should be different.

2. The application of indicators is often a statistical analysis or observation of data changes in a period of time, but the data in this period may also have operational factors, or the changes caused by fundamentals and news in a period of time have affected the trend as a whole, which may affect the accuracy of indicators, as does the K-line chart. Are more or less affected by some external factors, which are not absolute.

3. In daily trading, some traders often make a comprehensive analysis of several different technical indicators, but the comprehensive use of indicators or K-line charts alone may not only blur the original correct direction, but also make the trading process more complicated. Global Jinhui said that the correct approach is to comprehensively use technical indicators and K-line charts to think in two directions, as an auxiliary tool for analysis, so as to make the conclusion more credible.