Look at the entity. The size of the entity represents the intrinsic motivation. The larger the entity, the more obvious the upward or downward trend, and vice versa.
Look at the shadow line length. Shaded lines represent turning points. The longer the shadow line in one direction, the more unfavorable it is for the stock price to change in this direction, that is, the longer the shadow line, the more unfavorable it is for the stock price to rise and the longer the shadow line, the more unfavorable it is for the stock price to fall.
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.
It is based on the opening price, the highest price, the lowest price and the closing price of each analysis period. Take the daily K-line as an example, first determine the opening price and closing price, and draw the part between them into a rectangular entity. If the closing price is higher than the opening price, the K line is called the positive line, which is represented by a hollow entity. On the contrary, it is called a negative line and is represented by a black entity or a white entity. Many softwares can use colored entities to represent negative and positive lines. In the domestic stock and futures markets, red is usually used to represent the positive line and green is used to represent the negative line. However, investors who participate in European and American stock and foreign exchange markets should pay attention to the fact that in these markets, green is usually used for the positive line and red for the negative line, which is just the opposite of domestic habits. ) Connect the highest price and the lowest price with the entity with thin lines. The line between the highest price and the entity is called the upper shadow line, and the line between the lowest price and the entity is called the lower shadow line.
Similarly, if you draw a K-line chart with one minute's price data, it is called a one-minute K-line. Draw a K-line chart with one month's data, which is called a monthly K-line chart. The drawing cycle can be flexibly selected as required, and K-lines with a cycle of 2 minutes and 3 minutes can also be seen in some professional drawing software.
K-line is a special market language, and different forms have different meanings.