Basic line graph 1: K line (Candlestick)

The K-line, also known as a candle chart, represents the movement of the stock price at a given time and reflects the market sentiment of the day.。A K-line consists of four prices, the opening price, the highest price, the lowest price, and the closing price.。

A candle represents the opening price and closing price, while the thin wick at both ends of the candle represents the highest and lowest price, also known as the upper and lower hatching lines.。The candle is green, representing the day's stock price rise; the candle is red, representing the day's stock price fall。

Let's talk about the solid part of the candle first.。The bottom end of the green candle entity is the opening price of the stock for the day; the top end is the closing price of the stock for the day。When the closing price is higher than the opening price, a green candle is formed。The bottom end of the red candle entity is the closing price of the stock for the day; the top end is the opening price of the stock for the day。When the closing price is lower than the opening price, a red candle is formed。

Then the wick at both ends of the candle - the upper and lower hatching。The upper shadow line represents the highest intraday price of the day, and the lower shadow line represents the lowest intraday price of the day.。

In general, the presence of hatching represents pressure and support。The upper hatching represents pressure, the lower hatching represents support。The length of the hatching depends on the strength of the long and short sides.。

If the upper shadow line is very long, on behalf of the stock selling power is strong, the stock price is pulled to a higher position, by the market sell-off pressure back;。

On the stock price chart, the K line can represent the trend of different cycles.。Reflects one-day stock price movements on the daily K line, one-week stock price movements on the weekly K line, and one-month stock price movements on the monthly K line, depending on the chart settings。

Investors can judge the degree of stock price volatility on the day by the length of the K-line, and the longer the K-line, the greater the volatility on the day.。

The K-line will take on a variety of patterns and arrangements, with different patterns representing different market sentiment and a high probability that the stock price will rise or fall。

Bullish Candlestick Pattern means K-line pattern is bullish; Bearish Candlestick Pattern means K-line pattern is bearish.。

Basic Line Graph 2: Support and Resistance

We often hear that "a certain stock falls below a support level" or "there is a huge resistance above a certain price," referring to the invisible pull of the stock price between ups and downs.。

When the stock price is repeatedly supported in a certain price or area, as if there is an invisible hand to block, do not let the price down, this is the "support," to support the decline of the stock price。

Support represents the lowest price that the market can accept for the stock, and when the stock price falls to a certain position many times and does not fall again, it represents a stronger buying market and considers the stock price worth buying.。As a result, the stock price is stabilized and the chances of a rebound are greater.

And when the stock price has been pressed down many times in a certain price or region, it seems that there is another invisible big hand trying to push the price down, not to let the price break up, this is "pressure."。

Resistance represents the highest price that the market can accept for the stock, and when the stock price rises to a certain position many times and does not rise again, it represents a stronger sell in the market, believing that the stock price is expensive and not worth buying.。Because, the stock price is pinned down and the chances of falling are higher.。

Investors can use support and resistance to find a reasonable buy or sell point.。

When the stock price falls below support, it means that the market no longer accepts the price, meaning that the stock will weaken。Therefore, it is a good buy point for the share price to reach support。Conversely, if the stock price falls below the support level, it is a signal to sell.。

When the stock breaks above resistance, it means that the market can accept a higher price, which means that the stock will strengthen.。Therefore, a stock price breakout of resistance is a good buy point。Conversely, if the stock reaches a resistance level but fails to break through, it is a signal to sell。

Basic Line Chart 3: Moving Average

Moving Average (Moving Average), also known as moving average, often abbreviated MA in English, represents the average transaction price over a specified period of time (days, weeks, months, years), which is simply the average holding price of all investors over a period of time.。For example, the 20-day moving average represents the average price of a stock over the past 20 days。

In general, the time period of the moving average is divided into: minute, hourly, daily, weekly, monthly, quarterly, etc.。The most commonly used moving average is the daily moving average, there are 5-day line (also known as the weekly line, 5 trading days for a week), 10-day line, 20-day line, 60-day line, 120-day line, 250-day line and so on.。

Generally speaking, only looking at a single moving average, the signal is not clear enough, so many investors will use two moving averages at the same time, a short-term moving average (5MA, 10MA, 20MA), with a long-term moving average (20MA, 60MA, 120MA), through the cross signal to determine the buy and sell signals.。

When the short-term moving average 20MA crosses the long-term moving average 60MA upward, it indicates that the stock will go strong, the term is called "gold cross," which means that there may be an upward trend in the short term;

When the short-term moving average 20MA falls through the long-term moving average 60MA, it indicates that the stock will go weak, the term is called "death crossing," representing a possible downward trend in the short term.。

Investors can use moving averages to determine buy and sell signals by referencing what the average price has been over the past few days as a reference for support and resistance levels.。

SUMMARY

Technical analysis is one of the stock analysis methods, by observing past stock price movements and technical signals, to help investors determine market sentiment, the timing of entry and exit, the possible future trend of the stock price and the position of the stock price turning point.。However, all stock price movements are predictions and do not necessarily mean that they will happen.。It is recommended that when using technical analysis, it can be paired with observing the company's fundamental performance to reduce investment risk。