K-line records the price change of the stock in one day. Putting the daily K-lines together in chronological order constitutes the historical change of stock price, which is called K-line chart. K-line graphically represents the increase and decrease of the strength of buyers and sellers, the transformation process and the actual combat results. After nearly a hundred years of use and improvement, K-line theory has been widely accepted by investors.

K-line, also known as candle chart, is said to have originated from the rice market in Japan in the18th century. At that time, Japanese rice merchants used it to express the change of rice price, and then it was widely used in stock market and futures market because of its unique plotting method. It is based on the opening price, highest key, lowest price and closing price of each trading day (or each analysis cycle). The structure of K-line can be divided into three parts: upper shadow line, lower shadow line and intermediate entity.

K-line is a columnar line, which consists of shadow lines and entities. The rectangle in the middle is called solid, the thin line above the solid is called shadow, and the bottom is called shadow. Entities are divided into positive and negative lines.

K-line can be divided into daily K-line, weekly K-line and monthly K-line, and minute line and hour line are also commonly used in dynamic stock analysis software. K-line is a special market language, and different forms have different meanings.

K-line diagram is intuitive, three-dimensional and informative, and contains rich oriental philosophy. It can fully show the strength of the stock price trend, the change of the power contrast between buyers and sellers, and accurately predict the market outlook. It is a technical analysis method widely used in various media and computer real-time analysis systems.

superiority

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.

disadvantaged

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.

K-line chart characteristics

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, we can completely record the daily or periodic market performance. After a period of trading, the stock price forms a special region or form on the chart, and different forms show different meanings. We can find some regular things from these morphological changes. The forms of K-line chart can be divided into reverse form, arrangement form, gap and trend line.

Stock k-line chart:

With the trading time as the abscissa and the price as the ordinate, the daily K-line is drawn continuously to form a K-line chart.

The columns in the K-line diagram can be divided into positive and negative lines. Generally, the red column represents the positive line and the black column represents the negative line.

If the closing price is higher than the opening price in the time period indicated by this column, that is, the stock price rises, the column is painted red, otherwise it is painted black. If the opening price is exactly equal to the closing price, a crosshair is formed.

Judgment method:

First, the single-day K-line form

The uniqueness of the K-line chart is that the strength of the market can be preliminarily judged by using the single-day K-line pattern.

The following are some basic K-line forms for reference only:

Dayang Line (Changhong): The opening price was close to the lowest price in the whole day, and then the price rose all the way to the highest price, indicating that the market buying enthusiasm was high and the gains were not exhausted.

Big Yinxian (Long Black): The opening price is close to the highest price in the whole day, and then the price falls all the way to the lowest price, indicating that the market has a strong downward trend, especially in high-priced areas, which is even more dangerous.

Lower shadow line: the price once fell sharply, but supported by buying power, the price rose again and closed at the highest price, which was a strong form.

Shadow line: After the price once fell sharply, but supported by buying power, the price rebounded upward. Although the closing price is still lower than the opening price, it can also be regarded as strong. However, it appears in the high-priced area, indicating that the price has a callback requirement, and attention should be paid to selling.

Upper shadow line: prices rise and fall, and the gains are blocked. Although the closing price is still higher than the opening price, there is resistance above, which can be regarded as weakness.

Upper shadow line: price inflation is blocked, and the gains are blocked. Although the closing price is still higher than the opening price, there is resistance above, which can be regarded as weakness.

Crosshair: The price dropped sharply after the opening, but it was supported at the low level. The buying below was proactive and finally closed near the highest price, showing strong performance. When the long shadow line appears in the low-priced area, it is often an important reversal signal.

Inverted crosshair: After the price skyrocketed, it encountered strong resistance at a high level and was finally forced to close its position near the opening price. Although there is a desire to attack, the market has repair requirements and is weak. When the inverted crosshair appears in the high-priced area, it is often an important change signal.

Cross star: the buyers and sellers are evenly matched and the trend is stable; However, in a strong city, the cross star often becomes the intersection of market power transformation, and the market outlook may change.

Word line: Four-in-one K line reflects that the market transaction is light, and it is difficult to have a big change in the market outlook; However, if it appears in the daily limit (down limit), it means that the power gap between buyers and sellers is too big, and the direction of the market outlook is clear, which is difficult to reverse in the short term.

Two-day or two-day K-line combination

By observing the K-line shape for two consecutive days, it is more reliable to measure the market in combination with whether the current position is a high-priced area or a low-priced area.

High inversion form:

Yesterday, the cross closed and the multi-head attack was blocked; The next day, it opened higher and went lower, and finally closed near yesterday's closing price, indicating that the competition between long and short positions was fierce and the top selling pressure was heavy. Pay close attention to the market outlook and pay attention to delivery.

Yesterday, the reticle closed and the price showed signs of reversal; The next day, the market opened below yesterday's closing price, then the price fell all the way, and finally closed at the negative line, indicating that the empty side took the initiative, indicating that the market turned down and should pay attention to delivery.

Yesterday, the Zhongyang line closed, and the buyer was in full swing; After opening higher the next day, many parties could not follow the trend and fell sharply below yesterday's closing price, so the market weakened; This pattern appears after the high consolidation, so beware of the banker pulling the boat.

Yesterday, the Zhongyang line closed, and the buyer was in full swing; The next day, the upside was blocked again, and finally closed at the Yinxian line, but it was still above yesterday's closing price, indicating that the long-short competition was extremely fierce and the bulls were better. Pay close attention to the changes in the market outlook.

Low inversion form:

Yesterday, the cross line closed, indicating that the buying below was positive and the price stopped falling and stabilized. After the opening of the next day, the price continued to rise and finally closed at Xiaoyang Line, so the bulls' confidence increased and the price rebounded quickly. This combination appears in the low-priced area, which is a standard rebound form.

Yesterday, the Yinxian line closed, and the bears were fierce. The next day, it opened sharply lower. However, the buyer actively entered the market at the low level, rising instead of falling, and finally closed at the positive line, which was higher than yesterday's closing price, indicating that the empty side is weak and the price may rebound.

Yesterday, the Yinxian line closed, and the next day it opened sharply higher, and the price rose all the way, and finally closed at the highest price, indicating that many parties won, and the market outlook is expected to strengthen.

note:

There are many combinations of K-lines with different meanings. We should analyze them according to different price levels and their changing trends. Parameter setting can be combined with other auxiliary indicators (such as moving average, SAR, transaction accumulation) and so on.

Detailed explanation of k-line diagram view

K-line diagram is intuitive, three-dimensional and informative, and contains rich oriental philosophy. It can fully show the strength of the stock price trend, the change of the power contrast between buyers and sellers, and accurately predict the market outlook. It is a technical analysis method widely used in various media and computer real-time analysis systems. The recording method is as follows: (as shown in the figure) PS In order to modify my pictures conveniently, I will use the website instead of interested ones, so I can look at it myself.