Hammer line and neckline are common forms in K-line combination. What is the hammer line, what is the neckline, and how to use it in actual combat must be a concern of investors. Today, I will talk to you about the difference between hammer line and neckline.

Hammer line

The hammer head line, from its name, can be inferred that its shape is similar to a hammer. Its K-line chart is characterized by relatively small entity, short upper shadow line or non-existence, that is, the opening price is close to the highest price of the day, and the lower shadow line is relatively long. Generally, there is a downward trend, which shows that in the contest between long and short sides, the number of sides is increasing and the empty side is decreasing, which shortens the gap between the two sides. The longer the shadow line, the greater the strength of stopping falling and the greater the rebound space; The shorter the lower shadow line, the smaller the stopping force and the smaller the rebound space.

As shown in the above figure, there is a hammer line in Area A. In the contest between long and short sides, many parties have an absolute advantage, ending the previous downward trend and starting an upward trend in the later period, and the stock price has been boosted. This investor can consider entering the market on foot.

Neck line

Like the hammer line, the upper shadow line is short or nonexistent, the entity is small, and the lower shadow line is long, but the position is different. The neckline generally appears in the upward trend of the stock market, and the lower shadow line shows that in the contest between the long and short sides, the strength of the short side is constantly strengthening, the strength of many parties is constantly weakening, and the power gap between the long and short sides is constantly narrowing. The longer the shadow line, the greater the room for decline, and vice versa.

As shown in the above figure, in area A, there is almost no upper shadow line on the K line, and the length of the lower shadow line is nearly twice that of the entity. The classic neckline will be suppressed, the next one will be opened, and investors can properly throw out their stocks to make a profit.

Generally speaking, the hammer line in the downward trend is the transition period of the upward trend, and the neckline in the upward trend is the transition period of the downward trend.

(This information is for reference only and does not constitute investment advice. Carefully evaluate when investing. )