How to treat the monthly K line?
1. Set the average parameter to 6 in the monthly K line, 12, 18. When the above three moving averages diverge upwards, investors can focus on it.
2. Pay attention to the form of monthly K-line. If its shape is rectangular, curved bottom or double bottom, it means that this kind of stock has bottomed out for a long time, and the main force has had enough time to change hands at the bottom. The longer the bottom sideways, the more chips the main force locks at the bottom, and the greater the rebound of the stock price.
3. While paying attention to the monthly K-line and shape of individual stocks, we should also pay attention to the volume changes corresponding to the monthly K-line. The heavy volume at the bottom of the K-line in that month proved that the dealer was actively raising money at the bottom.
To study the K-line, we must first understand the following elements.
1, the same K-line combination, the monthly line is the most reliable, followed by the weekly line and the daily line. Of course, some investors like to analyze the annual line or sub-line. Through the study of futures market and stock market, the author thinks that the reference is of little significance. The probability of long-term combination with rising monthly line is the highest, and the reliability of combination with rising weekly line is also high, while the probability of cheating on daily line is greater, but it is very common. Therefore, when using the K-line combination to predict the market outlook, the daily line must cooperate with the weekly line and the monthly line to achieve better results.
2. The same K-line combination represents different meanings at different stages of stock price operation. For example, the same pregnancy line, which appears at the end of the decline, is more credible than the bottoming signal that appears at the shock stage. Therefore, you can't think that it is the bottom arrival when you see the pregnancy line or the morning star line. You must look at it comprehensively in combination with the whole trend.
3.k-line combination must match the volume. Volume represents the consumption of power and the intensity of the game between long and short sides, and K line is the result of the game. Only look at the K-line combination, not at the volume, the effect will be halved. Therefore, the volume of transactions is the driving force, and the K-line pattern is the result.