What is a K-line chart?

K-line, also known as candle chart, daily line, yin-yang line, bar line, etc. At present, it is commonly used as the "K-line", which originated from the rice market transactions in Japan18th century Tokugawa Shogunate (1603 ~ 1867) and is used to calculate the daily rise and fall of rice prices. Because of its unique drawing method, it is introduced into the analysis of stock market price trend. After more than 300 years of development, it has been widely used in the stock market, futures market, foreign exchange market and options market.

Drawing method of single K line

It is based on the opening price, the highest price, the lowest price and the closing price of each analysis period. Take the daily K-line as an example, first determine the opening price and closing price, and draw the part between them into a rectangular entity. If the closing price is higher than the opening price, the K line is called the positive line, which 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. At present, many softwares can use colored entities to represent negative and positive lines. In the domestic stock and futures markets, red is usually used to represent the positive line and green is used to represent the negative line. However, investors who participate in European and American stock and foreign exchange markets should pay attention to the fact that in these markets, green is usually used for the positive line and red for the negative line, which is just the opposite of domestic habits. Connect the highest price and the lowest price with the entity with thin lines. The line between the highest price and the entity is called the upper shadow line, and the line between the lowest price and the entity is called the lower shadow line.

Similarly, if we draw a K-line chart with one-minute price data, it is called 1 minute K-line. Draw a K-line chart with one month's data, which is called a monthly K-line chart. The drawing cycle can be flexibly selected as required, and K-lines with a cycle of 2 minutes and 3 minutes can also be seen in some professional drawing software.

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.

K-line is a special market language, and different forms have different meanings.

The function of K-line diagram

The so-called analysis of the stock trend is mainly based on the K-line chart.

In order to meet different needs, the K-line chart can be subdivided into: 5-minute K-line chart, 15-minute K-line chart, 30-minute K-line chart, 60-minute K-line chart, daily K-line chart, weekly K-line chart, monthly K-line chart and even 45-day K-line chart.

There are more than K-charts in the market, and each stock also has more than K-charts. Qianlong software in the daily K-line chart interface, press F8 to switch, great wisdom software has a "cycle switch" directory.

Novices like to watch time-sharing charts, and the stock price rises and falls obviously. However, once they get started, they will use the K-line chart without exception. They like to observe the 5-minute K-line chart at any time for short-term, 15-minute K-line chart, and watch the weekly K-line chart and monthly K-line chart for long-term.

Looking at the K-line chart is nothing more than judging the trend of the stock price. If you find yourself paying more and more attention to the weekly K-line chart and the monthly K-line chart for a year or more, then you can enter the intermediate class.

Judge the general trend and look at long-term charts, such as weekly K-line chart and monthly K-line chart. When the weekly K-line chart and the monthly K-line chart are at a high level, the overall price risk of the stock market is greater, so pay attention to light positions. When the weekly and monthly K-charts are at a low level, the overall price risk of the stock market is small. When buying, you can combine short-term charts (5-minute K-line chart, 15-minute K-line chart, 30-minute K-line chart, 60-minute K-line chart and daily K-line chart) to find low-level intervention, and the same is true for selling, so the stock market seems to have opportunities every day, but in fact, big opportunities come once every time.

The basic purpose of K-line chart is to find a "selling point". Although we are facing the same K-line chart, our understanding is different. You must observe carefully for a long time, at least your observation will experience a complete "bull and bear market". There are some books on how to make stocks from the perspective of technical analysis. You can buy it and have a look. "Wave Theory" is highly respected by everyone and should be read, but dialectically, it doesn't matter if you don't understand it for the time being. As the reading time increases, you will understand.

Noteworthy "Moving Average System"

On the candle chart, there are several curves with different colors, that is, moving averages, including 5-day moving averages (that is, draw a point with the daily average closing price of the past 5 days to connect these points), 10 moving averages, 20, 30, 60, 120, 250 moving averages, or you can set your own date, for example, 6544.