What is the significance of the upper and lower shadow lines of the golden K line?

In gold investment trading, investors can use the Yin and Yang of the K line to represent the rise and fall of the gold market, and can also use the length of the upper and lower shadow lines as the basis for daily judgment of gold price trend. So what's the point of the up and down shadows?

1、 The meaning of upper and lower shadow lines

Like stocks, in the gold market analysis, the length of the upper shadow line indicates that the resistance is large, and the length of the lower shadow line indicates strong support.

2、 Practical application of upper and lower shadow lines

1. The meaning and application of the upper and lower shadow lines when the upper and lower lines of the K-line diagram are drawn up

(1) Lower shadow positive line: refers to the K line chart received a positive line, and there is a considerable shadow line, its appearance, shows that the multi-party attack in the multi air war is steady and powerful, the price of gold falls first and then rises, and the market has the potential for further rise.

(2) Lower shadow line: it refers to the upper shadow line of K line drawing with box list. There are two possibilities for its appearance. In the first case, it shows that there are many uncertain factors and the rise is not strong. The second situation indicates that the multi-party upper attack is blocked and falling down, and the selling at the top is relatively heavy. Whether it can continue to rise is still unclear. Usually when this happens, it is suggested that investors should be cautious and wait-and-see.

(3) The upper and lower shadow lines are the same: it shows that many parties have taken the advantage, and there is a wave by wave upward market. The price rises steadily with the cooperation of trading volume, indicating that the gold price is bullish.

2. When the K-line chart up and down the shadow line represents the meaning and application: whether it is the upper line or the lower line is good, at the same time, it shows that there are more bearish people, the gold market falls too sharply, and the gold price may rebound.

3. Cross Star: refers to the K line map, the upper and lower shadow lines are equal, and there are no positive and negative lines. This kind of line is often called the variable disk cross star. Whether it appears in the high or low price areas, it can be regarded as the top or bottom signal, indicating that the general trend is about to change the direction of the original gold price.

The meaning of the upper shadow line and the lower shadow line have different meanings. When used in the K-line chart, we can't judge the specific future market trend only by its length. At the same time, we should analyze its trading strategy from different angles such as the moving average.

Was this article helpful?

0 out of 0 found this helpful