Entity and shadow line of foreign exchange K-line

The length and color of the entity and the length of the shadow line can often provide a lot of information. Often as long as the entity and shadow line are observed, the supply and demand situation of the market can be understood. As long as the length and color of the entity are used, the relative strength of the long and short sides can be determined. A long real body indicates intense competition between buyers and sellers. The longer the body, the stronger the pressure to buy or buy. Short entities mean less buying and selling activity.

The thin lines above and below the real body are called shadows and are used to show the range of price fluctuations. The shadow above the real body is called the upper shadow. The shadow below the real body is called the lower shadow. The upper shadow represents the highest point in price over a period of time. The lower shadow represents the lowest price point for a period of time.

The position and length of the shadow line can also reveal a lot of information. Therefore, when analyzing the psychological state of the market, we must also consider the position and length of the shadow line.

A line with a very long upper shadow, if it occurs in the high price zone, pressure zone and overbought zone, each has unusual meanings, because this line shape represents heavy selling pressure or insufficient buying power. No matter what the situation is, if the upper shadow line is very long, it will have a bearish taste. On the contrary, if a line with a long lower shadow occurs in the low price area, support area and oversold area, it means that the bears are losing their dominance.