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, you can completely record the market performance every day or for a certain period of time, and the stock price will be formed on the chart after a period of trading.

A special region or form, 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.

A, drawing method

First, we find 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 "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 or paint the column black, and this column is the "negative line".

Second, advantages

Can fully 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, shortcomings

The drawing method of (1) is very complicated and it is one of the most difficult charts to make.

(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.

On the other hand, Shi Kongtu is an analysis method based on stock trend, which has nothing to do with K-chart.