K line: K line is also called Yin and Yang candlestick. K line is a columnar line, which is composed of shadow line and entity. The part of the shadow above the entity is called the upper shadow, and the part below it is called the lower shadow. The entity is divided into positive line and negative line. The shadow line indicates the highest and lowest trading price of the day, while the body indicates the opening and closing price of the day.

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.

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It is drawn based on the opening price, highest price, lowest price and closing price of each analysis period. Taking the daily K-line as an example, first determine the opening and closing prices, and draw the part between them as a rectangular entity. If the closing price is higher than the opening price, the K line is called a positive line and is represented by a hollow entity. On the contrary, it is called a negative line and is represented by a black entity or a white entity.

Many software can use colored entities to represent the Yin line and the Yang line. In the domestic stock and futures markets, red is usually used to represent the Yang line, and green represents the Yin line.

(However, investors involved in European and American stock and foreign exchange markets should note: in these markets, green is usually used to represent the positive line and red to represent the negative line, which is exactly the opposite of the domestic custom.) Use a thinner line to divide the highest The price and lowest price are respectively connected to the entity. The line between the highest price and the real body is called the upper shadow, and the line between the lowest price and the real body is called the lower shadow.

Baidu Encyclopedia-K-line chart