The K-line chart originated in Japan. It was used by merchants in the Japanese rice market to record the market conditions and price fluctuations of the rice market. It was later introduced to the stock market and other markets because of its delicate and unique marking method. futures market. At present, this kind of chart analysis method is particularly popular in my country and even in Southeast Asia. Because the shape of the chart drawn by this method is quite like a candle, and these candles are black and white, it is also called a Yin and Yang line chart. Through the K-line chart, we can completely record the market performance of each day or a certain period. After a period of trading, the stock price will form a special area or pattern on the chart. Different patterns show different meanings. We can find out some regular things from these changes in form. K-line chart patterns can be divided into reversal patterns, consolidation patterns, gaps and trend lines, etc. Starting from the third section of this chapter, we will conduct a detailed analysis of these patterns one by one. 1. Drawing method: First, we find the highest and lowest prices of the day or a certain period, and connect them vertically into a straight line; then we find the opening and closing prices of the day or a certain period, and connect these two prices into a straight line. 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, it opens low and closes high), we will display it in red or leave a blank on the column. This column is called a positive 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), we will display it in blue, or paint the live bar in black, and this bar will be a negative line. 2. Advantages: Able to observe the real changes in the market comprehensively and thoroughly. 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. 3. Disadvantages (1) The drawing method is very complicated and it is the most difficult to make 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. 4. Analytical significance Since the Yin and Yang lines change a lot, and the Yin and Yang lines contain many changes of different sizes, it is necessary to talk about the significance of its analysis. Before discussing the analytical significance of Yin and Yang lines, let us first know the names of each part of the Yang lines. Let's take the Yang line as an example. The part between the highest and closing prices is called the upper shadow, the part between the opening price and the closing price is called the entity, and the part between the opening price and the lowest price is called the lower shadow.