K-line refers to the K-line chart in the stock trend, which originated from the Tokugawa shogunate era in Japan (1603 ~ 1867). It was used by merchants in rice market at that time to record the market and price fluctuation of rice market, and was first introduced into futures because of its ingenious and unique plotting method. Many people think that the K-line started from the stock market. Through the K-line chart, you can completely record the situation and performance of the stock market every day or at a certain time. After a period of trading, the stock price forms a special region or form on the chart, and different forms show different meanings. The three K-line combinations of insertion line, holding line and favorable stimulation line are the most common classic bottoming forms.
Average, referred to as MA, originally meant moving average. Because we make it linear, it is generally called moving average, or moving average for short. Is the sum of the closing prices in a certain period of time divided by the period. For example, the daily line MA5 refers to the closing price in five days divided by five.
The moving average was put forward by Joseph E.Granville, a famous American investment expert, in the middle of 20th century. The theory of moving average is one of the most widely used technical indicators, which helps traders to confirm the existing trend, judge the coming trend and find the trend that will be reversed if it is delayed excessively.