Understanding the theory of K-line morphology is of great help to the study of K-line morphology. K-line forms can be divided into continuous arrangement and breaking the original balance, which is characterized by changing the original running trend of stock prices. So what are the common forms of K-line finishing?

I. Rectangular Finishing (Box Finishing) Form

1, morphological characteristics: the stock price fluctuates up and down between two parallel and horizontal straight lines.

2. Form description: Generally speaking, this form occurs in the process of running a certain trend, with the nature of rest and gaining momentum. After the rectangular arrangement, the stock price will break through the original trend and rise or fall again.

3. Form application: In the case that there is no sign of change in the upward trend, medium and long-term investors can generally hold it with confidence. On the contrary, when there is a rectangular arrangement in the downward trend, they can wait patiently for a lower buying point. Short-term investors can use the box to adjust, buy low and sell high, and repeatedly fast forward and fast out!

Second, the triangular arrangement form

The most common forms of continuous arrangement can be divided into symmetrical triangle, ascending triangle and descending triangle.

1, symmetrical triangle finishing: This finishing form is that under the condition of unchanged original trend, its fluctuation range is reduced, and the fluctuation highs rise in turn, and the lows rise in turn.

2. Description of form: This form will not change the original trend as a whole, and it is a midway rest process of the original trend.

3. Morphological point: Generally, there will be about 6 turning points, including at least 4 turning points. Finishing usually ends in half or two thirds of symmetrical triangle's. The shorter the finishing time in symmetrical triangle, the stronger the ability to maintain the original running trend. In the later period of symmetrical triangle's breakthrough, the further ups and downs will not be less than the bottom length of symmetrical triangle. That is, the distance from point a to point B.

It should be noted that; The key to the development trend of triangular arrangement (especially symmetrical triangle) is to confirm the breakthrough direction, which needs the cooperation of trading volume. Therefore, when operating, it is best to wait for a breakthrough before acting! See below.

Third, the flag-shaped finishing form.

Before the national flag is arranged, there will be an equal ascending or descending process, which is called flagpole and is used to desecrate steep or almost vertical lines. From point A to point B, flag arrangement reflects that the stock price fluctuates on the parallelogram in the direction of flagpole, and it will resume the original upward or downward trend after arrangement. Flag sorting is more likely to appear in the fourth wave.

Flag finishing usually doesn't last long, and the formation of flagpoles and the breakthrough after flag finishing must be coordinated with the turnover. When the flagpole is formed, the transaction volume should be expanded rapidly, and the flag surface should be arranged, and the transaction volume will gradually decrease. Without the cooperation of volume, it means that it is difficult to break through, and the quantity should break through the flag and buy or sell decisively!