《《Securities Investment Technology and Analysis 证券投资》.doc

Securities Investment Technology and Analysis 证券投资技术分析 In finance, technical analysis is a security analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. ●Candlesticks Chart K线 A candlestick chart is a style of financial chart used to describe price movements of a stock. Each candlestick typically shows one day; so for example a one month chart may show the 20 trading days as 20 candlesticks. Each bar represents all four important pieces of information for that day: the open, the close, the high and the low. Candlestick charts are a visual aid for decision making in stock, foreign exchange, commodity, and option trading. It serves as a cornerstone of technical analysis. Candlesticks are usually composed of the body (black or white), and an upper and a lower shadow (wick): the area between the open and the close is called the real body, price excursions above and below the real body are called shadows. The wick illustrates the highest and lowest traded prices of a security during the time interval represented. The body illustrates the opening and closing trades. If the security closed higher than it opened, the body is white or unfilled, with the opening price at the bottom of the body and the closing price at the top. If the security closed lower than it opened, the body is black, with the opening price at the top and the closing price at the bottom. A candlestick need not have either a body or a wick. In trading, the trend of the candlestick chart is critical and often shown with colors.In China:red for higher closing, and green/blue for a lower closing. Candlestick Pattern In technical analysis, a Candlestick pattern is a movement in prices shown graphically on a candlestick chart that some believe can predict a particular market movement. There are 42 recognised patterns that can be split into simple and complex patterns. simple patterns (Doji 十字星 The doji is a commonly found pattern in a