In gold investment transactions, in addition to using the yin and yang of the K line to represent the ups and downs of the gold market , investors can also use the length of the upper and lower shadow lines as the basis for daily judgment of the gold price trend. So, what do the upper and lower shadows mean?
The meaning of the upper and lower shadow lines
Like stocks, in gold market analysis , a long upper shadow indicates great resistance, and a long lower shadow indicates strong support.
the practical application of the upper shadow and lower shadow
- When there is a positive line on the K-line chart, the meaning and application of the upper and lower shadow lines:
(1) Lower Shadow Yang Line: Refers to a Yang line on the K-line chart with a considerable lower shadow line. Its appearance indicates that the multi-party attack in the long-short war is steady and powerful. The price of gold first fell and then rose. Potential for further upside.
(2) Lower Shadow Yang Line: Refers to a Yang line on the K-line chart, and there is an upper shadow line on the box list. There are two possibilities for its appearance. The first situation is that when multiple parties attack, the selling pressure is heavy. This kind of pattern is often seen in oscillating patterns, indicating that there are many uncertain factors at this time, and the rally is not strong. The second situation means that the multi-party upside is blocked and the sell-off is heavy, and it is still unclear whether the situation can continue to rise. Usually when this happens, investors are advised to wait and see more cautiously.
(3) The upper and lower shadow lines are equal: it means that the bulls have taken the lead, and there is a wave-by-wave uptrend. The price rises steadily with the cooperation of the trading volume, indicating that the gold price is bullish.
- When there is a negative line on the K-line chart, the meaning and application represented by the upper and lower shadow lines: whether it is the upper or lower Yin line, it is good. At the same time, it means that there are many people who are bearish, the gold market has fallen too sharply, and the price of gold has Possibility of rebound.
- Doji: Refers to the K-line chart, the upper and lower shadow lines are equivalent, and there are no positive and negative lines. This type of line is often called a doji of the changing plate. Whether it appears in the high price area or the low price area, it can be regarded as a top or bottom signal, indicating that the general trend is about to change the direction of the original gold price.
The upper shadow line and the lower shadow line represent different meanings. When used in the K-line chart, it is not possible to judge the specific market outlook by its length alone. At the same time, it is necessary to analyze its trading strategy from multiple angles such as the moving average.
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