Specifically, each rectangular box of the K-line chart represents a time period, which can be minutes, hours, days, etc. The upper and lower lines of the rectangular box represent the highest price and the lowest price respectively, and the upper and lower parts of the rectangular box represent the opening price and closing price. If the closing price is higher than the opening price, it is usually represented by a solid rectangular box, which is called the positive line; If the closing price is lower than the opening price, it is usually represented by a hollow rectangular box called a negative line.
By observing the K-line chart, investors can understand the buying and selling power of the market, price fluctuations and changes in market sentiment. Common K-line forms include various combinations of single K-line and multiple K-lines, such as hammer line, cross star, triple ninth festival, etc., which can provide certain reference and signals to help investors make decisions.
In a word, K-line chart is a common technical analysis tool in financial markets. By observing and analyzing the K-line chart, investors can better understand the market trend and formulate reasonable investment strategies.