A large number of stock investors often ask: What does a shrinking volume and a long shadow mean? Today, Zongheng will provide a comprehensive answer to your questions, hoping that this article can provide you with reference value. Please follow Zongheng's footsteps and take a look!

1、 What does shrinking and lengthening the shadow mean?

A long bearish candlestick refers to a situation where the buying power is relatively strong at the beginning of the trading day, but the selling power is once very strong, causing a significant suppression of the stock price. However, in the subsequent confrontation between long and short forces, multiple parties have the upper hand, reclaiming the hard-earned gains of the short side. This creates a long bearish candlestick, but the final closing price is below the previous closing price.

2、 Precautions for operating the 'long shadow shadow line'

1. The ratio of the length of the "Long Lower Shadow Yin Line" (Yama Line) at a high position to the length of the entity can be small The proportion of long F-shadow lines appearing at low prices, but not less than 1. If it is less than this proportion, it cannot be called a long bottom shadow line and can only be another type of chart line. The high-level 'long shadow bearish line' (Yan Wang line) is a very prominent signal of reaching the top. After the appearance of this chart, the stock price should fall by at least 10%, and it should be sold decisively.

2. The "long lower shadow shadow line" (downhill line) on the way down is a difficult type of chart to grasp because it sometimes appears not far from the top and sometimes not far from the bottom. The "downhill line" that appears not far from the top is easy to identify and will not cause any problems. The most difficult to identify is the "downhill line" that appears not far from the bottom, as it has already experienced a significant decline. Many investors, including experienced traders, easily mistake it for a "downward moving bottom line" and actively speculate on the bottom instead of reducing their positions. As a result, there is still a bottom at the bottom, and the bottom taker becomes a "middleman". Some 'downhill lines' do indeed fall to the bottom, and when you sell stocks, the stock price rises sharply, causing huge losses for investors who are short selling.

3. Seize the best buying and selling opportunities for the "bottom line", "Yama line", and "downhill line". According to experience, the best time to buy with a "downward moving bottom line" is on a bullish day. If the "F floating bottom line" still closes at a bearish line the day after it appears, you cannot buy and must wait until the bullish line before selling. I would rather give up this purchasing opportunity than force myself to place an order. The best time to sell the "Yama Line" is on the day when the chart appears. If it cannot be sold in a timely manner for some reason on that day, it should be shipped the next day regardless of whether it closes negative or positive. The best selling time for the "downhill line" can be done 10 minutes before the market opens the next day. At this time, selecting a high point to sell can lead to a more ideal price.