K-line refers to the daily, weekly and monthly opening price, closing price, highest price, lowest price and other ups and downs of various stocks, which are graphically represented. A thin line at the top of K-line is called the upper shadow line, and a thick line in the middle is an entity. The thin line below is hatched. When the closing price is higher than the opening price, that is, the stock price is in an upward trend, we call the K line in this case the positive line, and the entity in the middle is indicated by blank or red. At this time, the length of upper shadow line represents the difference between the highest price and closing price, the length of entity represents the difference between closing price and opening price, and the length of lower shadow line represents the difference between opening price and lowest price.
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 K-line diagram is called "_ line". In the west, the first English letter "K" was literally translated as "K" line, which developed from it.
First of all, we find the highest price and 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 show 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, which is the "negative line".