In K-line analysis, you will encounter various forms. Different forms are worth analyzing and understanding. Today I will introduce the rectangular and rectangular form. I guess everyone wants to know what it looks like. It's a form. Here we bring you an analysis of the rectangular rectangle form. How to operate it?

The rectangular rectangle is a market pattern in which the stock price fluctuates between two horizontal upper and lower boundaries. The stock price fluctuates within a certain range. When it rises to a certain level, it encounters resistance and selling pressure and turns back. However, it finds support somewhere below and rises. However, when it rises to the same high point as before, it is blocked again and falls. When it reached the last low point, it gained support again. By connecting these short-term high points and low points with straight lines, a horizontal channel can be drawn. The channel is either upward sloping or not downward. It just develops in parallel. And, so the rectangular shape is like this. Also called a box. However, in terms of its general expansion, all stock price fluctuation ranges can be regarded as composed of different boxes, so in practice, there is also a set of system operation theories, commonly known as "box theory".

Formation mechanism:

The rectangular shape is a conflict equilibrium arrangement, which is the result of the struggle between the long and short parties with equal strength. The forces of the long and short parties have completely reached a balanced state within the box range. No one has the upper hand during this period of movement. The bullish side believes that the falling price is an ideal buying point, so it buys every time the stock price falls to that level, forming a horizontal support line. However, the other group of bearish investors lack confidence in the stock price rising. It is believed that the stock price is difficult to rise above the upper track of its box, so the stock price returns to that price level and is sold immediately, forming a parallel pressure line. Therefore, when the stock price rises to a certain height, a group of investors who lack confidence in the market outlook withdraw; and when the stock price falls back to a certain price, a group of stock investors who are looking forward to future prospects buy. Since the strength of the long and short parties is equal, the stock price It fluctuates back and forth within this area. Of course, sometimes it is also the result of the main banker controlling the range to attract goods and ship goods.

Characteristic conditions:

1) The upper and lower rails of the rectangular shape are generally horizontal and parallel, which is the main difference from the wedge shape;

2) A rectangle is generally a relay form, that is, the general stock price trend will not change after consolidation;

3) The trading volume of rectangular stocks is generally in a decreasing state. If the trading volume is large, You should beware of the main force shipping to form a top. When breaking through upwards, you need to increase the trading volume to match it, but when breaking through downwards, it is not necessary;

4) The longer the rectangular arrangement lasts, the more reliable the meaning of the pattern will be;< /p>

5) The minimum theoretical rise and fall of a rectangle is the vertical height of the box;

Operating strategy:

The best buying and selling point of the rectangle is the box When the body's breakthrough and retracement are confirmed, you can usually make a price difference when it is close to the upper and lower rails of the box, but you need to pay attention to setting a stop loss point.

This is the introduction to the analysis of rectangular and rectangular shapes. How to operate it? After analyzing these K-line shapes, you must first grasp the reasons for its formation, and then know the operation strategy. I can deal with it calmly. Follow this website to learn more about the classic illustrations of K-line charts.

After seeing this, I believe you already understand the rectangular shape analysis and how to operate it.