K-line, also known as Yin-Yang candle, originated in Japan more than 300 years ago. At that time, in order to predict the rise and fall of rice prices, there was a businessman named Benji Zongjiu in the Japanese grain market. He carefully observes the change of rice price in the market every day to analyze and predict the rise and fall of rice price in the market, and records the fluctuation of rice price with charts. This figure is the initial prototype of K-line, so K-line is also called Japan Line or Sakai Line (also called Sakai Line). Ben Zongjiu's book Wind, Forest, Fire and Mountain (Sun Tzu's Art of War) quickly spread to the stock market and all over the world. There are several morphological statistics of its K-line combination. Because Ben Zongjiu's hometown is Sakata, Japan, his method of breaking the line is called "Sakata tactics".

From 65438 to 0990, steve nison, an American, introduced the "Japanese K-chart" to western financial circles with his book Yin and Yang, which immediately caused a sensation. In his book "Tactics of Stock K-line", steve nison has long demonstrated four technical analysis methods with strong vitality to western financial circles, cracked the secrets of Japanese financial investors, and displayed the charm of candle chart, three-line inversion chart, brick chart and line chart. Therefore, steve nison is praised as "the father of K-line" by western financial circles. K-line is the collective name of negative line and positive line. So, why is it called K-line? In fact, the word "K" in Japan is not written as "K", but as "Ku" (Japanese pronunciation reading kei). K-line is the pronunciation of "Ku line", and the K-line diagram is called "Ku line". In the west, the first English letter "K" is literally translated as "K" line.

First, the basic meaning of K line

K-line, also known as Yin-Yang line, bar line, red black line or candle line, originated from rice market trading in Tokugawa shogunate era (1603- 1867) in Japan. After more than 200 years of evolution, a technical analysis method with complete form and analysis theory has been formed.

Second, the application of basic types of K-line

From the shape of the daily K-line chart, we can make the following general judgments:

1. Dayang line, indicating a strong upward trend. 2. The big yinxian line indicates a big drop. 3. Long and short battles, first falling and then rising, bulls are strong. 4. In the battle of long and short positions, bears have a slight advantage, but there is support after falling back, and the market outlook may rebound. 5. Long and short battles, the bulls are slightly better, but after rising, they are under pressure, and the market outlook may fall. 6. Long and short battles, rising first and then falling, short positions are strong. 7. Turn back signal. If it appears after the surge, the market outlook may fall; If it appears after the plunge, the market outlook may rebound. 8. Reverse temptation, if it appears after the plunge, the market may rebound; If it appears after the surge, it should remain calm and pay close attention to the changes in the market outlook. 9. Explain that the bulls have the upper hand slightly, but if the market outlook is weak, it may fall. 10. It rises first and then falls, and bears have the upper hand slightly. 1 1. commonly known as the big cross, it means that the long and short battles are fierce and evenly matched, and the market outlook is constantly changing. 12. A small cross indicates a narrow consolidation.

It should be noted that the significance of a single K line is not great, but it should be compared with the K line of another day.

Comprehensive K-line types, which represent different long and short forces; With the crosshair as the balance point, ten represents the strongest multi-party force (the weakest air force) and one represents the strongest air force (the weakest multi-party force).

III. Long-term Basic Types and Applications of K-line

The above has already introduced the strength change of K-line single-day stock price. So, how to use the K-line to judge the long-term stock price changes? Firstly, the basic types formed by connecting several K lines are introduced.

(1) head and shoulder type

After the K-line gathers for a period of time, there will be three vertices or bottoms in a certain price range, but the second vertex or bottom is higher or lower than the other two vertices or bottoms. As shown in figure 10-3, it is a head and shoulder top with two shoulders; Or figure 10-4, it is a head-shoulder bottom type with one bottom and two shoulders. However, sometimes there may be more than three vertices or bottoms; If one or two heads (or bottoms) and left and right shoulders appear, it is called compound shoulder type (or compound head-shoulder bottom).

(2) Double-deck roof

Double top means that when a stock rises to a certain price rapidly, due to short-term profit-taking selling pressure, the trading volume expands, and the stock price falls from the peak, and then the trading volume gradually shrinks with the decline of the stock price. After the stock price stopped falling and rebounded, it began to rise upwards. When it rose to the price near the previous peak, the volume increased again, but it was less than the volume created by the previous peak. The selling pressure of the previous peak reappeared, and the stock price fell again and fell below the neckline, forming a downward trend. The neckline is to draw a parallel line at the low point between two peaks. Because the double top breaks through the neckline after completion, it looks like the English letter "M" graphically, so the double top can also be called "M" head.

(3) Double bottom

That is, the inverted state of the double top forms a "W" shape; In other words, the stock price rebounded when it fell to a certain price, but the buyer's power was still not concentrated, and the stock price weakened again, and then the decline tended to ease, and it was supported when it fell to the previous low price. At this time, the buyer's strength increased and the stock price began to show a strong trend.

It should be noted that when the double top (or double bottom) appears, it may not always show a reversal trend, and sometimes it will still show a finishing form. After the completion of double top or double bottom, an effective breakthrough can only be considered if the neckline exceeds the stock price by more than 3%, otherwise it may still linger or even reverse the trend.

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Chicago Mercantile Exchange (Chicago Mercantile Exchange)

Chicago Mercantile Exchange

Chicago mercantile exchange? (CME) is the largest futures exchange in the United States and the second largest exchange in the world for buying and selling futures and futures option contracts. The Chicago Mercantile Exchange provides investors with many financial and agricultural transactions. Since the establishment of 1898, the Chicago Mercantile Exchange has continuously provided the market with risk management tools to protect investors from the risks brought about by the price changes of financial products and tangible goods, and to give them opportunities to profit from trading.

From June 5438 to February 2002, the Chicago Mercantile Exchange Holding Company was officially listed on the new york Stock Exchange, and the Chicago Mercantile Exchange changed from a non-profit organization with membership to a profit-making company.

Trading futures on the Chicago Mercantile Exchange.

The mass media often show the trading activities of the Chicago Mercantile Exchange as a colorful and vivid dynamic scene: traders shout orders on the floor and wave their arms wildly. Although this "open outcry" transaction continues, in recent years, the Chicago Mercantile Exchange is making innovations to strengthen electronic trading. At present, electronic trading volume has accounted for half of the total trading volume of the exchange.

Because electronic transactions enable individuals to directly connect with the various markets of the Chicago Mercantile Exchange at home or on the company's computer at any time, its GLOBEX? The transaction volume of electronic trading platforms continues to occupy a high proportion in the total transaction volume. This trading method will help attract more market participants, eventually increase the trading volume of the exchange, improve market liquidity, and enable the market to conduct a large number of transactions quickly and effectively.

The Chicago Mercantile Exchange owns and operates its own clearing house, through which all transactions are cleared to ensure the orderly conduct of transactions. This can reduce the risk of non-performance of futures or futures options trading responsibilities.

The Chicago Mercantile Exchange has the largest number of open futures and futures option contracts in the world. Open contracts refer to the number of contracts that have not been settled at the end of a trading day, which is the most important indicator of liquidity. Liquidity is the key factor to ensure the success of the market and attract investors and customers.

Pension funds, investment consultants, portfolio managers, corporate finance personnel, commercial and investment banks, brokers/dealers and individuals all over the world trade on the Chicago Mercantile Exchange, and these transactions form part of their financial management strategy.

Chicago Mercantile Exchange products

The Chicago Mercantile Exchange offers investors a variety of products, including futures and futures option contracts:

Stock or stock index products-including E-mini? Standard & Poor's. P 500？ , Nasdaq-100? E-mini Russell 2000? Follow the Nikkei? 225。

Interest rate products-products based on short-term interest rates, including Eurodollars and London Interbank Offered Rate (LIBOR).

Foreign exchange (FX)- products include Australian dollar, euro, pound, Japanese yen and Swiss franc.

Agricultural products-including cattle, dairy products, wood, pork and weather contracts.

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