K-line is a representation method of stock trend chart, which reflects key price indexes such as opening price, closing price, highest price and lowest price of stock by drawing vertical lines. K-word of K-line refers to using a histogram to show the price difference between the opening price and closing price of each time period. If the closing price of the time period is higher than the opening price, the bar chart is displayed in green, otherwise it is red. Therefore, the K word of the K line actually refers to the distance between the price opening and closing.

K-line chart is not only used in the stock market, but also often used in other fields. For example, in the foreign exchange market, the K-line chart can well reflect the degree and trend of exchange rate fluctuations between different countries; In the futures market, by observing the K-line chart, investors can predict the future market changes and trends, so as to better grasp the investment opportunities. In addition, the K-line chart can also be used to study historical market data, which can help investors to analyze indicators such as returns and risks in different time periods, so as to better formulate investment strategies.

K-line can not only help investors understand market trends, but also be an important tool for technical analysis. By observing the K-line chart, investors can judge the strength of the market, formulate trading strategies, and make analysis and decisions according to their own risk tolerance. In addition, the K-line can also help investors identify the trend line and support level of the market, and then formulate a reasonable stop-loss and profit-taking plan to reduce risks. Therefore, it is very important for investors to master the technical analysis method of K-line chart when trading stocks or futures.