K-line chart, also known as candle chart, Japanese line, Yin-Yang line, bar line, etc., is commonly referred to as "K-line" and originated from the Tokugawa shogunate era in Japan in the 18th century (1603~ 1867), used to calculate the daily rise and fall of rice prices. Because of its unique function, people have introduced it into the analysis of stock market price trends. After more than 300 years of development, it has been widely used in stocks, futures, foreign exchange, options and other securities markets. There are three types of K-line charts that are commonly used: K-line that connects a single target price with a single line; candlestick K-line chart; European and American K-line chart

K-line chart is based on the trading time. The horizontal axis is the horizontal axis, and the price is the vertical axis. The daily K-line is drawn continuously. The bars in the K-line chart are divided into positive lines and negative lines. Generally, the red column represents the positive line, and the green column represents the negative line.

If the closing price during the time period represented by the column is higher than the opening price, that is, the stock price rises, the column will be painted in red, otherwise it will be painted in green. If the opening price is exactly equal to the closing price, a cross is formed.

The advantages of the K-line chart: it 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 the market), but also understand the daily market fluctuations.

Disadvantages of the K-line chart: (1) Drawing method It is very complicated and is the most difficult to create among many trend charts. (2) There are many changes in the Yin line and the Yang line. For beginners, it will be quite difficult to master the analysis. It is not as simple and easy to understand as the column chart.

Through the K-line chart, the market performance of each day or a certain period can be completely recorded. After a period of trading, the stock price will form a special area or pattern on the chart. Different Forms show different meanings. Some regular things can be found out from these changes in form. The spot K-line chart patterns can be divided into reversal patterns, consolidation patterns, gaps and trend lines, etc.

How to draw the spot K-line chart?

First find the day or period Connect the highest and lowest prices vertically to form a straight line; then find the opening and closing prices of the day or a certain period, and connect these two prices into a long and narrow rectangular cylinder.

If the closing price of the day or a certain period is higher than the opening price (that is, opening low and closing high), we will display it in red, or leave a blank space on the column. This column is called It's called "yang line".

If the closing price of the day or a certain period is lower than the opening price (that is, opening high and closing low), it will be displayed in blue, or painted black on the live bar. This bar is the "yin line"