Forex K line shadow and lower shadow diagram, what does the length of the upper and lower shadow lines mean?

The K-line chart not only shows the market price changes in one day, but also shows the price movement of the market so far more accurately based on the combination of the price changes it shows and the related price changes before and after it, and it also implies that the market will be in the future. trending trend.

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Diagram of upper and lower shadows

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The thin line at the top of the K-line is called the upper shadow line, and the thick line in the middle is the real body. A thin line below is the lower shadow. When the closing price is higher than the opening price, that is, the stock price is in an upward trend, we call the candlestick in this case a positive line, and the body in the middle is represented by a blank or red. At this time, the length of the upper shadow represents the price difference between the highest price and the closing price, the length of the real body represents the price difference between the closing price and the opening price, and the length of the lower shadow represents the gap between the opening price and the lowest price.

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When the closing price is lower than the opening price, that is, the stock price trend is in a downward trend, we call the K line in this case a negative line. The entity in the middle is black. At this time, the length of the upper shadow line represents the price difference between the highest price and the opening price, the length of the real body represents the range that the opening price is higher than the closing price, and the length of the lower shadow line is determined by the price difference between the closing price and the lowest price. Decide.

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Generally speaking, the positive line indicates that the buying order is strong and the selling order is weak. At this time, the stock price will rise due to the shortage of stock supply. A negative line indicates strong selling and weak buying. At this time, the stock price fell as the holders of the stock were eager to sell the stock. At the same time, the longer the upper shadow line, the stronger the selling pressure of the upside, which means that when the stock price rises, there will be greater selling pressure; More investors will take advantage of this opportunity to buy stocks.

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What does the long shadow line on the Yang line mean?

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upper shadow

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Only the upper shadow, or the candlestick whose upper shadow is longer than the lower shadow. Indicates that during a certain period of the day, although there was a large amount of buying that caused the price to rise, the situation reversed and the sellers tended to gain the upper hand, resulting in a decline in the price. Both positive and negative lines indicate a downward price signal.

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lower shadow

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Only the lower shadow, or the candlestick chart where the lower shadow is significantly longer than the upper shadow. Indicates a period of intense selling during a certain time of the day, but then the situation reverses and the buyer becomes stronger, causing the price to rise. Both the Yangxian and Yinxian indicate that the market outlook will rise.

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bald line

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A long candlestick chart with no hatches. It is very easy to appear when there is consensus material in the market. The price extended significantly in one direction. The positive line indicates that the buyers are overwhelmingly strong, and the negative line shows that the sellers are overwhelmingly strong. It is generally believed that a trend reversal will occur when a bald positive line appears at the bottom price and a bald negative line appears at a high price.

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Open disc head line

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A long candlestick with no shadow in the opening direction. After the Yangxian opened, the price rose sharply, but when it was close to the close, the rising trend could not be sustained, and the price fell slightly and closed. After the Yinxian opened, the price fell sharply, but when it was close to the close, the price rebounded slightly. Although they are not as powerful as the bald line, they are also considered to express the advantages of their own trading power.

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The closing bald line refers to the long K line with no shadow line in the closing direction. The positive line shows that although the price fell for a while, the price rebounded sharply until the close. The negative line indicates that prices rose for a while, but then reversed and closed significantly lower than the opening price. Like the bald line, it shows a considerable degree of strength.

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A candlestick with short body and shadow. Refers to the day from the opening to the closing, the price does not change much. The market atmosphere is confused and has no sense of direction. Indicates that the market is recuperating and confused. When the current period appears at a high price and a low price, it indicates that the market trend for a period of time no longer exists and is about to reverse.

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Discard the K-line with short sub-line entity and long shadow line. The market is mixed, with strong buyers for a while and prices rise, then strong sellers and prices falling with them. Finally the price closed without much change. Because the forces on both sides are very strong, there is a confrontation, and the sense of direction is not obvious. The implication is that the person who finds the child returns to the place where the child was discarded in order to determine the parent of the child.

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Long lower shadow The lower shadow is 3 times longer than the real body. Because it looks like a Tang umbrella, it strongly supports the price, hence the name. A bullish candlestick indicates a period of heavy selling pressure followed by heavy buying, allowing prices to close above the opening price. Indicates that the buyer's power is relatively strong, indicating a subsequent rise. The negative line indicates that the buyer is less powerful than the seller, and the price is lower than the opening price.

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Long upper and lower shadow lines Yang line, long upper and lower shadow line Yang line washes up the upper and lower shadow line Yang line, indicating that after the opening of the day, the long upper and lower shadow line Yang line buyer force once made the transaction price higher than the opening price, but the seller force also suppressed the price to Below the opening price, after the confrontation between the two sides, the bulls were slightly better, but they were not able to close at the highest price due to the influence of the bears.

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In this case, if it appears after rising for a period of time, it indicates that the power of the bears has increased, and the rising trend is coming to an end; if the long upper and lower shadow lines appear after falling for a period of time, it indicates that the strength of the multiple parties is gradually condensing and the downward trend likely to be stopped. In actual combat, we can divide the Yang line with upper and lower shadow lines, the long shadow line Yang line into the Yang line whose entity is longer than the upper and lower shadow, the long shadow line is shorter than the upper shadow and longer than the lower shadow Yang line, and the entity is shorter than the lower shadow and longer than the upper shadow. There are three shades of sunshine. The real body is shorter than the upper and lower shadow lines at the same time. Since the real body is too short and similar to a doji, it is classified as a doji.

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Although the diagrams of the upper and lower shadow lines in this article are not very detailed, they can also help investors to have a general understanding. Of course, if you want to do in-depth understanding and analysis, you have to check more relevant information. Of course, understanding these concepts is the most basic. If you want to really invest well, you must use relevant skills reasonably and flexibly.