The origin of K-line chart can be traced back to Japan in17th century. At that time, Japanese rice merchants began to use this chart to record and analyze their trading behavior. With the passage of time, the K-line chart has gradually expanded to other financial markets and become a global technical analysis method.
1.Part of the K-line diagram.
The K-line chart consists of candle lines, each of which represents the price trend over a period of time. The main part of the candle is called entity, which represents the price change between the opening price and the closing price. If the entity part is solid, it means that the closing price is higher than the opening price and the price rises; If it is hollow, it means that the closing price is lower than the opening price and the price falls.
The upper and lower shadow lines of the candle indicate the highest and lowest prices and the price fluctuation between the opening and closing prices respectively. The upper hatch extends above the solid and the lower hatch extends below the solid. By observing the length and position of these hatching lines, we can understand the price fluctuation over a period of time.
2.k-line chart type.
K-line diagram is mainly divided into solid candle diagram and hollow candle diagram. The solid candle chart shows that the price of solid candles is rising, while the hollow candle chart shows that the price of hollow candles is falling. This classification method enables us to clearly identify the rising and falling trend of prices.
K-line charts can also be divided into different types according to time periods, such as daily K-line, weekly K-line and monthly K-line. Different time periods will show different price fluctuations, thus helping us to conduct long-term and short-term transaction analysis.
3. application of K-line diagram (application of K-line diagram)
K-line chart is an important technical analysis tool, which can provide valuable market information and signals for traders. By observing the K-line chart, traders can judge important trading indicators such as price trends, support and resistance levels, and trading signals.
Traders can predict the price trend by identifying different chart shapes, such as head-shoulder top shape, double top shape and double bottom shape. The appearance of these forms is often related to the reversal or continuation of prices, which provides traders with opportunities to enter and exit.
4.k-line chart method.
There are many methods and techniques for K-line chart analysis, such as trend line, average line and relative strength index. These analytical methods can help us determine important price trends, support levels and resistance levels, and provide trading signals.
Among them, trend line is an important analysis tool. By connecting the high or low points of the price, we can observe the rising or falling trend of the price. Moving average is a tool to display the price trend smoothly, which can help us identify the long-term price trend.
Relative strength index is a tool to measure price kinetic energy, which can help us to judge the overbought and oversold situation of the market. By combining these analysis methods, we can work out a relatively accurate trading strategy.
5. Advantages and limitations of K-line chart
As a technical analysis tool, K-line chart has many advantages. It can display the trend and fluctuation of price intuitively and provide rich information. K-line chart can help us find the trend and reversal signal of price and provide reference for trading. K-line chart is universal in the world and can be used to analyze the stock, foreign exchange and futures markets.
K-line chart also has some limitations. K-line chart can only provide historical price analysis, but cannot predict future price trend. K-line diagram is only an auxiliary tool, which needs to be combined with other technical indicators and analysis methods. The interpretation of K-line chart requires some experience and skills, which may be difficult for beginners.
Conclusion (conclusion)
K-line chart is an important technical analysis tool, which can directly display the price trend and fluctuation. By observing and analyzing the K-line chart, traders can judge the price trend and reverse signal and formulate corresponding trading strategies. K-line chart also has some limitations, so it needs to be comprehensively analyzed with other analysis tools and methods. For those who want to engage in financial transactions, it is very important to master the analysis method of K-line chart.