For the three lines in the K-line chart, it mainly depends on whether they are long or short. Bulls are bullish and bears are bearish. On the whole, if the three lines in the K-line chart are arranged in long positions, then the market is bullish and you can continue to buy. On the other hand, if the three lines are arranged in a short position, then the market is bearish and we need to get out early. These three lines explain a very simple problem in many cases, that is, long holding shares and short shipping.

The drawing method of K-line chart in stock market and futures market includes four data: opening price, highest price, lowest price and closing price. All K-lines are centered around these four data, reflecting the general situation and price information. If you put the daily K-line chart on a piece of paper, you can get the daily K-line chart, and you can also draw the weekly K-line chart and the monthly K-line chart.

K-line origin

K-line chart is a kind of chart source in Tokugawa shogunate era in Japan. It was used by businessmen in Japanese rice market at that time to record the market and price fluctuation of rice market, and then it was introduced into stock market and futures market because of its ingenious and unique drawing method. At present, this chart analysis method is particularly popular in China and even the whole Southeast Asia. Because the chart drawn in this way looks like candles, and these candles are black and white, it is also called yin-yang line chart. Through the K-line chart, we can completely record the daily or periodic market performance. After a period of trading, the stock price forms a special region or form on the chart, and different forms show different meanings. We can find some regular things from these morphological changes. The forms of K-line chart can be divided into reverse form, arrangement form, gap and trend line.

So, why is it called "K-line"? In fact, the word "K" in Japan is not written as "K", but as "_" (Japanese pronunciation reads kei). K-line is the pronunciation of "_ line", and the K-line chart is called "_ line", which is developed from the literal translation of the first letter "K" in western English.

Drawing method

First, we find the highest price and the lowest price of the day or a certain period of time, and connect them vertically into a straight line; Then find out the opening price and closing price of the day or a certain period of time and connect the two prices into a long and narrow rectangular column. If the closing price of the day or a certain period of time is higher than the opening price (that is, lower prices and higher prices), we will indicate it in red or leave a blank on the column, which is called "positive line". If the closing price of the day or a certain period of time is lower than the opening price (that is, high opening and low going), we will use green to indicate it, or paint the column black, and this column is the "negative line".