The K-line chart was first used by rice merchants in Osaka during the Tokugawa shogunate era in Japan to record the fluctuation of rice prices for one day, one week or one month at that time, and then it was introduced into the stock market. K-line diagram is intuitive, three-dimensional and informative, and contains rich oriental philosophy. It can fully show the strength of the stock price trend, the change of the power contrast between buyers and sellers, and accurately predict the market outlook. It is a technical analysis method widely used in various media and computer real-time analysis systems.

1, the daily K-line is drawn according to the four price points formed in the daily trend of stock price (index), namely, opening price, closing price, highest price and lowest price.

When the closing price is higher than the opening price, the opening price is lower than the closing price, and the rectangular column between them is drawn in red or hollow, which is called the positive line; The highest point of the upper shadow line is the highest price, and the lowest point of the lower shadow line is the lowest price.

When the closing price is lower than the opening price, the opening price is lower than the upper closing price. The rectangular column between them is drawn with black or solid lines, which is called negative line. The highest point of the upper shadow line is the highest price, and the lowest point of the lower shadow line is the lowest price.

2. According to the calculation cycle of K-line, it can be divided into daily K-line, weekly K-line, monthly K-line and annual K-line.

Weekly K-line refers to the K-line chart drawn with the opening price on Monday, the closing price on Friday, the highest price and the lowest price in the whole week. The monthly K-line is based on the opening price of the first trading day of a month, the closing price of the last trading day and the highest and lowest prices of the whole month. The definition of annual K-line can also be derived. Weekly K-line and monthly K-line are often used to judge the mid-term market. For short-term operators, the 5-minute K-line, 15-minute K-line, 30-minute K-line and 60-minute K-line provided by many analysis software also have important reference value.

3. According to the fluctuation range of opening price and closing price, K-line can be divided into extreme yin, extreme yang, small yin and small yang, middle yin and middle yang, and big yin and big yang. Their general fluctuation range

The fluctuation range of extreme yin line and extreme yang line is about 0.5%;

The fluctuation range of xiaoyin line and xiaoyang line is generally 0.6-1.5%;

The fluctuation range of Yinzhong Line and Zhongyang Line is generally1.6-3.5%;

The fluctuation range of Yin Da Line and Dayang Line is above 3.6%.

4. The formation process and different meanings of several typical one-day K-charts are explained in the following time-sharing chart with trading volume. The time-sharing chart records the trend of the stock price throughout the day. Different trends form different kinds of K-lines, but the same K-line has different meanings because of different stock price trends.