1.k-line chart history
K-line chart first appeared in Japan with a long history. /kloc-at the end of 0/8, Japanese businessmen began to record rice trading prices with k-line charts. Because it shows the opening price, the highest price, the lowest price and the closing price, it is called "three-service map". Later, this chart evolved into today's K-line chart, which was gradually used by financial markets throughout Asia and the world.
2.k-line chart composition
K-line chart usually consists of a series of continuous K-lines. Each K-line represents the price activity in a specific time period, usually a trading day or more. Each K-line is represented by a square (candle), and its upper and lower slender lines are called upper shadow line and lower shadow line. The top and bottom of the cube are called entities, and the color of the entity indicates the relative relationship between the opening price and the closing price. If the entity is hollow or white, it means that the closing price is above the opening price, suggesting that the price is rising; If the entity is solid or black, the closing price is lower than the opening price, suggesting that the price is falling.
3.k-line chart type
There are three kinds of K-line charts: daily K, weekly K and monthly K. The daily K-line chart consists of price activities of each trading day, weekly K-line chart consists of price activities of one week and monthly K-line chart consists of price activities of one month. In practical application, daily K-charts are widely used, while weekly K-charts and monthly K-charts are usually used for long-term trend analysis.
4.k-line chart form
K-line diagram form is an important part of K-line diagram technical analysis. K-line chart has many forms. Here are some common forms. Single candle chart is the simplest form of K-line chart. The long upper shadow line and the long lower shadow line represent the high and low points of the price respectively. Hammer line and inverted hammer line are two common forms of price reversal, representing the upward and downward trend reversal respectively. The cross star line indicates the uncertainty of the market. The opening price and closing price are horizontal lines, and the upper and lower shadow lines are equal. A longer crosshair usually means a change in price. The three methods of ups and downs are very effective, and K-line morphological analysts can refer to the classification to summarize.
5.k-line diagram analysis method
K-line chart technical analysis usually uses morphological analysis and technical index analysis. K-line form analysis mainly judges the market trend and future price trend through the change of K-line form. Technical index analysis analyzes the trend and intensity of the market through various technical indicators, and predicts the direction and intensity of price changes. Various technical indicators and K-line morphological analysis are usually closely related, and experienced investors can understand them when using these analysis methods.