K-line chart, which originated in Japan, was used by Japanese rice market businessmen to record the rice market and price fluctuation at that time, and was later introduced into the stock market and futures market because of its ingenious and unique drawing method. At present, this chart analysis method is particularly popular in China and even the whole Southeast Asia. Because the chart drawn in this way looks like candles, and these candles are black and white, it is also called yin-yang line chart. Through the K-line chart, we can completely record the daily or periodic market performance. After a period of trading, the stock price forms a special region or form on the chart, and different forms show different meanings. We can find some regular things from these morphological changes. K-line chart can be divided into reverse shape, arrangement shape, gap and trend line. From the third section of this chapter, we will analyze these forms one by one. First, the drawing method first, we find out the highest price and the lowest price of the day or a certain period of time, and connect them vertically into a straight line; Then find out the opening price and closing price of the day or a certain period of time and connect the two prices into a long and narrow rectangular column. If the closing price of the day or a certain period of time is higher than the opening price (that is, lower prices and higher prices), we will indicate it in red, or leave a blank on the column, which is called the positive line. If the closing price of the day or a certain period of time is lower than the opening price (that is, high opening and low going), we will use blue to indicate it, or paint the column black, and this column is the negative line. Second, advantages can comprehensively and thoroughly observe the real changes in the market. From the K-line chart, we can not only see the trend of the stock price (or market), but also understand the daily market fluctuation. Third, the drawing method of shortcomings (1) is very complicated, which is the most difficult to make among many trend charts. (2) There are many changes in the line of Yin and Yang, so it is difficult for beginners to master the analysis, which is not as simple and easy to understand as a histogram. Fourth, the significance of analysis Because there are many changes in the Yin-Yang line, there are also many changes in the Yin-Yang line and the Yang line, so we should specifically talk about the significance of its analysis. Before discussing the analytical significance of the yin-yang line, let's first understand the names of various parts of the yin-yang line. Let's take Yangxian as an example. The part between the highest price and closing price is called the upper shadow, the opening price and closing price are called entities, and the opening price and the lowest price are called the lower shadow.