#看懂K线 Candlestick Body: The candlestick body consists of the opening price and the closing price. The opening price refers to the first transaction price of a financial product at the beginning of a trading day, while the closing price refers to the last transaction price at the end of the trading day. If the closing price is higher than the opening price, the body is typically represented in red (a common color scheme in the Chinese stock market), known as a bullish candlestick. The longer the body, the greater the increase in stock price. If the closing price is lower than the opening price, the body is represented in green (another common color in the Chinese stock market), known as a bearish candlestick. The longer the body, the greater the decrease in stock price.

• Upper and Lower Shadows: The upper shadow extends from the highest price of the body to the highest price of the day, while the lower shadow extends from the lowest price of the body to the lowest price of the day. The length of the shadows reflects the strength of resistance or support that the stock price experienced during the trading day.

Meaning of a Single Candlestick

• No Shadow Candlestick: This type of candlestick has no upper or lower shadows. In a no shadow bullish candlestick, the lowest price is the opening price and the highest price is the closing price, indicating strong bullish strength; the opposite is true for a no shadow bearish candlestick, where the lowest price is the closing price and the highest price is the opening price, showing dominant bearish strength.

• Candlestick with Upper and Lower Shadows: A bullish candlestick with upper and lower shadows indicates that the stock price experienced some fluctuations during the day, with the bulls in control but facing some selling pressure from the top. A bearish candlestick with upper and lower shadows indicates that the bears are dominant, but there is also some buying support from below.

Candlestick Patterns

• Morning Star: Composed of three candlesticks, the first day is a large bearish candlestick, the second day is a doji or small candlestick, and the third day is a large bullish candlestick. This pattern typically appears at the end of a downtrend, signaling a potential bottoming and rebound of the stock price.

• Evening Star: Opposite to the Morning Star, it consists of a large bullish candlestick, a doji or small candlestick, and a large bearish candlestick, generally appearing at the end of an uptrend, suggesting a potential top and pullback of the stock price.

The above only covers the basic aspects of candlesticks; in actual trading, it is necessary to consider multiple factors such as trading volume and overall market trends for comprehensive judgment.