The pagoda line is divided into white and black imaginary bodies and entities, and the entity bar line is the line that divides the rise and fall of the stock price and judges its rise and fall trend. It also shows the battle process and the transformation of strength between long and short, and shows the appropriate buying time and selling time.

Its characteristics are similar to bitmap, that is, it does not record the daily or weekly stock price change process, but records and draws when the stock price keeps hitting new highs or new lows, or rises or falls in the opposite direction.

Baota line is suitable for short-term operation, but it is best to use it together with K line, moving average and other indicators, which can reduce the probability of misjudgment. For example, if the 10 moving average goes flat and the Baota line turns black, it needs to be sold.