First, look at Yin and Yang first.
Yin and Yang represent the trend direction of long and short, the Yang line indicates that it is in an upward market and may continue to rise, and the Yin line indicates that it is in a downward market and may continue to fall. Take Yangxian as an example. After a period of long and short struggle, the closing price is higher than the opening price, which indicates that the bulls have the upper hand, so Yangxian indicates that the price will continue to rise in the next stage.
Second, look at the entity.
Entity refers to the difference between the closing price and the opening price of K-line. The bigger the spread, the stronger the K-line. Therefore, in foreign exchange transactions, if you choose a larger K-line, such as Yin Da Line and Dayang Line, the probability of successful transactions is higher.
Third, finally look at the shadow line.
Shadow line refers to the price difference between the highest and lowest K line or the lowest price and the closing price. For example, hatching refers to the price difference between the highest price and the closing price. The farther the distance between the highest point and the closing price, the longer the lower shadow line, indicating that the rising power is affected by yin. At this time, it is more favorable to buy down and short. The lower shadow line refers to the price difference between the lowest price of K line and the closing price. The longer the shadow line, the stronger the counterattack of rising. Therefore, in foreign exchange trading, if you see that the shadow line on the K line is too long, you can't make more orders. If you see that the shadow line on the K line is too long, you can't short orders.
Although the K-chart of foreign exchange is very clear, investors can't make a completely correct judgment according to the K-chart, so they should also be prepared for stop loss in the trading process. In addition, we should always pay attention to the changes in the foreign exchange market and respond in time.