The candle chart of Yin and Yang (K-line chart) originated in Japan in the17th century, when the Japanese applied it to the white rice market by means of technical analysis. Munehisa Homma was a businessman who bought and sold white rice in this way at that time. He mainly used the past price of rice market to predict the future price fluctuation, so he gained great wealth. Homma's buying and selling principle in the white rice market has evolved into the theory of yin-yang candle prevailing in Japan today. Appearance of Yin and Yang Candles A Yin and Yang candle must draw the opening price, the highest price, the lowest price and the closing price. If the closing price is higher than the opening price (that is, the candle is colorless or white); If the closing price is lower than the opening price (i.e. higher opening and lower closing), the candle is solid or black. The hollow or solid part of the Yin-Yang candle (that is, the position between the opening price and the closing price) is called "candle body", and the thin line above or below the candle body (representing the trading interval of the whole cycle) is called "shadow line". The top of the shadow represents the highest price and the bottom represents the lowest price. Because the chart of Yin-Yang candle is clearer than other analysis charts, such as line chart and bar chart, it is widely welcomed by technical analysts. Yin-yang candle can also observe more information, in addition to the highest and lowest prices, it also provides information on opening and closing prices. In addition, the simultaneous use of technical analysis and chart morphological analysis can help investors make better trading decisions and make the market structure and internal strength more transparent. I'm also looking at foreign exchange these days, hehe, my head is getting bigger and bigger.