All things in the world have two sides, and Yin and Yang are these two sides, also known as the two poles.

Taiji gives birth to the two instruments, the two instruments give birth to the four images, and the four images give birth to the eight trigrams.

In the stock market, there is also Yin and Yang, which are the simplest bearish and bullish lines.

It seems that bearish and bullish lines are very simple, but in fact, there are many profound things behind them.

Many retail investors will superficially think that Yin is a decline, and Yang is an increase.

This is just the most superficial thing, and the market already has the situation of false Yang and false Yin, not to mention some of the profound meanings of buying Yin instead of Yang.

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Let's talk about the bearish line first.

The bearish line itself refers to the closing price of the day being lower than the opening price of the day.

Even if the stock price is rising, the bearish line also represents that the people who entered the market at the opening today will ultimately suffer losses.

Superficially, the bearish line represents that the bear side occupies the advantage in a single day, and the bull side adopts a passive low absorption trend.If there is a continuous series of bearish candlesticks, it represents that the bulls are in disarray and cannot take on the selling pressure from the bears at all.

If there is an increase in trading volume during the later stages of a decline, with an accelerated fall, it represents that many bulls have already turned into bears and started to flee in panic.

Bearish, in the stock market, is a passive, negative side, and a symbol of weakness.

Now, let's talk about bullish candlesticks.

A bullish candlestick itself refers to the closing price of the day being higher than the opening price of the day.

Even if the stock price still falls in the end, a bullish candlestick represents that the capital that entered the market that day ultimately made a profit.

A bullish candlestick means that the bulls have the advantage, taking an active offensive posture, and the price rises steadily.

A series of small bullish candlesticks represents the continuous exploration of the bulls, small forces fighting, and achieving victory after victory.

Many times, there will be a quick pace of small bullish candlesticks, followed by a large bullish candlestick to release emotions.

This represents that the bull chips are already sufficient, and the main rise of the rise has begun, and the bears do not resist in the short term.Yang, in the stock market, represents the proactive and positive side, symbolizing strength.

Understanding the concept of Yin and Yang is not difficult, but grasping the transformation of Yin and Yang, as well as their dual nature, is very important.

A term that frequently appears is "chasing rises and cutting losses."

Translated, it means to be happy when seeing Yang and to be sad when seeing Yin.

When seeing a Yang line (upward trend), one believes it has risen and will continue to rise, so they will actively pursue it.

But when seeing a Yin line (downward trend), one believes it has fallen and may fall further, waiting when buying and reluctantly selling at a loss.

However, Yin and Yang are inherently in a process of alternation.

From extreme decline comes prosperity, and from extreme prosperity comes decline.

This is why there is the saying, "Buy on the Yin, not on the Yang."The article translates to:

Refers to the opportunity to buy at a lower price during a bearish trend, which is a better trading moment.

Some strategies, such as the first bearish candlestick of the leader, originate from this concept.

If you see through this point, you may feel happier every time you see a decline, because the price you buy stocks is lower, and the cost is lower.

In the long run, buying at a lower cost, entering during bearish trends, is definitely the right approach.

On the contrary, many bullish candlesticks, especially those with high volume at high levels, are just a smokescreen to deceive retail investors.

Moreover, when you see through the transformation between yin and yang, you will have a deeper understanding of the true meaning of selling high and buying low.

The best way to sell high and buy low is at the turning point of the rise and fall of yin and yang.

If the transformation of the rise and fall of yin and yang is translated into a professional term in the stock market, it is called the "bias rate."

When the market is overheated and the rise brought by the bullish candlestick shows an overbought phenomenon, the bias rate will peak.

Conversely, when the bias rate hits bottom, the market will also usher in the transformation of yin and yang.In other words, when the market falls too much, it will naturally rise; when it rises too much, it will naturally fall.

There is no market that only falls and does not rise, nor is there a stock that only rises and does not fall. This is the principle of Yin and Yang.

When you see through the essence of Yin and Yang, you will also let go of the obsession with chasing gains and cutting losses.

Because the rise of a stock is not seen before it is believed, but believed before it is seen.

This seems very profound, but in fact, it is quite simple.

You can observe the laws of the market and the subtle signs on the trading board to judge the turning points of the rise and fall of Yin and Yang, and find relatively suitable buying and selling points.

Someone might ask, what if I buy on a bearish day and make a mistake?

You need to understand one thing.

Buying on a bullish day is buying certainty, while buying on a bearish day is buying price.

This means that buying on a bullish day is actually buying a step late, because it has already risen.Buying on a bullish candlestick refers to the market validating your expectations, proving that your judgment of it rising is correct.

Therefore, after this standard signal appears, you buy in, and the certainty is stronger.

Buying on a bearish candlestick is when you choose to buy before this rising signal has appeared.

Your certainty will be worse because the market has not yet verified right or wrong, but the market has given you the first move, which is a lower price and a smaller loss cost.

This is the subtlety of yin and yang, each has its pros and cons, complementing each other.

Similarly, when selling, a bullish candlestick sells price, and a bearish candlestick sells certainty.

When you judge that the market will fall in the future, a bullish candlestick can help you lock in profits and sell at a high point you think.

And a bearish candlestick is a verification of your judgment, making your selling choice more certain.

The yin and yang in the stock market also have their own "good and evil".Many people may not understand this term at first glance.

Simply put, if a stock has many bearish candlesticks, it is currently sowing evil, while a high proportion of bullish candlesticks means it is sowing good.

A large number of bearish candlesticks can be understood as being dominated by the bears, while a large number of bullish candlesticks can be understood as being dominated by the bulls.

Even if the stock price is falling, a stock with many bullish candlesticks represents more opportunities, and the bulls are still working hard.

If you are willing to hold such a stock patiently, there are more chances to turn around.

However, if there are many bearish candlesticks, the chances of turning around are few, and you must wait for the alternation of yin and yang before you can enter and lay out.

Looking at the weekly line, the monthly line, and the yin and yang, you can often see whether a stock's nature is good or evil.

The yin and yang on the daily line are more often a reflection of the stock's corresponding dealer's trading techniques.

Many high open and low go are actually deliberately harvested by the dealer, bringing information to the market.

So, yin and yang are very magical, they have written a lot of things on the market.The concept of Yin and Yang is not only reflected in the bearish and bullish lines but also in the trading volumes associated with them.

A high trading volume for a bearish line is definitely a bad sign, while a high trading volume for a bullish line is not necessarily a good sign.

The Yin and Yang of trading volumes are manifested in their continuity, especially the sustainability of the positive volume.

Yin and Yang need to be balanced, especially during periods of increased volume.

When there is a surge in volume for a bearish line, it needs to be compensated by a continuous positive volume from bullish lines. Similarly, if the volume of bullish lines persists for a long time, it also requires the volume of bearish lines to reduce the emotional impact.

The essence of Yin and Yang is balance, which is essential for sustainability. Stocks that rise over the long term also need to go through multiple adjustments along the way.

The market itself is composed of Yin and Yang. Whether one can see through the Yin and Yang depends on one's personal cultivation in the stock market.