What is the meaning of the shadow on the gold k line and the lower shadow?

In gold investment transactions, in addition to using the Yin and Yang of the K line to represent the rise and fall of the gold market, investors can also use the length of the upper shadow line and the lower shadow line as the basis for daily judgment of the gold price trend. So, what is the meaning of the upper shadow and the lower shadow?

1. Significance of upper shadow and lower shadow

Like stocks, in the analysis of the gold market, the long upper shadow indicates greater resistance, and the lower long shadow indicates strong support.

Second, the practical use of upper and lower shadows

1. When the Yang line is received on the K-line diagram, the meaning and application of the upper and lower hatches:

(1) Lower shadow Yang line: refers to a Yang line received on the K-line chart, and there is a considerable lower shadow line. Its appearance indicates that the attacks of multiple parties in the long and short battles are stable and powerful. The price of gold first falls and then rises. The potential for further rise.

(2) Lower shadow Yang line: refers to a positive line received on the K-line diagram, and there is an upper shadow line of the box list. There are two possibilities for its appearance.

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The first case is that when the multi-party attack is shown, the pressure is heavy when the upper part is displayed. This kind of graph is commonly seen in the shock pattern, indicating that there are many uncertain factors at this time, and the rally is not strong.

The second case indicates that the multi-party upside is blocked and the decline is heavy. It is unclear whether the situation can continue to rise. When this situation usually occurs, investors are advised to be more cautious on the sidelines.

(3) The upper and lower shadows are equivalent: it shows that many parties have taken advantage, and there is a wave of upswing market. The price rises steadily in response to the volume of transactions, indicating that the gold price is bullish.

2. When the Yin line is received on the K-line chart, the meaning and application of the upper and lower shadows: whether it is the upper Yin line or the lower Yin line, it also shows that there are many bearish people, the gold market has fallen too sharply, and the gold price has The possibility of a rebound.

3. Doji: refers to the K-line diagram, the upper and lower shadows are equivalent, and there is no appearance of the Yang line and Yin line. This type of line is often called a variable disk Doji, whether it appears in a high-price area or a low-price area, it can be regarded as a top or bottom signal, indicating that the trend is about to change the direction of the original gold price.

The upper shadow line and the lower shadow line have different meanings. They cannot be used in the K-line chart to judge the specific future market trend solely by their length. At the same time, they must analyze their trading strategies from multiple different angles such as the moving average.

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