K-line chart originated from Tokugawa shogunate era in Japan. It was used by businessmen in Japanese rice market at that time to record the market and price fluctuation of rice market, and was later introduced into stock market and futures market.

A K-line, including opening price, closing price, highest price and lowest price. When the opening price is less than the closing price, we call it the positive line; When the opening price is greater than the closing price, we call it the negative line; When the opening price is equal to the closing price, we generally call it a cross star. Record K-lines according to different time units, so there are daily K-lines, weekly K-lines, monthly K-lines, time-sharing K-lines and so on. On the K-line chart of each cycle, people will find that the shape of K-line is different. Some K-lines are positive lines without upper and lower shadow lines, some K-lines are negative lines without upper and lower shadow lines, some K-lines are as long as hammers, and some K-lines are crosses.

Through the continuous study of the K-line chart, people began to sum up: in what form will the stock price rise; In what form will the stock price fall; What kind of form will appear, the stock price will reverse and so on. As a result, more and more people began to study K-line.

Reference list:

1, Li Hang's Collection of Stock Operations.