The k-line chart is the basic knowledge that we must understand when we are trading stocks. This issue brings you the basic knowledge of the k-line chart and teaches you how to look at the buying and selling diagram of the k-line chart.
The k line, also known as the yin and yang line and the candle line, was a chart used by grain traders to record the rise and fall of rice prices in the Tokugawa shogunate era of Japan in the middle of the 18th century. Later, it was introduced into the stock market because of its unique way of presentation and drawing.
A k line records the price change of a stock in a cycle. Its cycle can be divided into monthly k line, weekly k line, daily k line, hourly line, etc. The elements of a single k line usually include: opening price, closing price, highest price, lowest price, entity, upper shadow line, and lower shadow line.
In the yang k line, the top line segment is the upper shadow line, the highest point of the upper shadow line is the highest price, the rectangular area in the middle is the entity, the top end of the entity is the closing price, the bottom end of the entity is the opening price, the bottom line segment is the lower shadow line, and the lowest point of the lower shadow line is the lowest price.
In the negative k line, the top line segment is the upper shadow line, the highest point of the upper shadow line is the highest price, the middle rectangle is the entity, the top end of the entity part is the opening price, the bottom end of the entity part is the closing price, the lower line segment is the lower shadow line, and the lowest point of the lower shadow line is the lowest price.
The biggest difference between the positive k line and the negative k line is that the opening price of the positive k line is below the closing price, and the opening price of the negative k line is above the closing price.
K line can be divided into three categories: positive k line, negative k line and cross line. According to the fluctuation range of the opening price and closing price, the k line can be divided into small positive and small negative, small positive and small negative, middle positive and middle negative, large positive and large negative.
Generally, the fluctuation range of small positive and small negative stars is about 0.5%, the fluctuation range of small positive and small negative lines is 0.6% - 1.5%, the fluctuation range of middle positive and middle negative lines is 1.6% - 3.5%, and the fluctuation range of large positive and large negative lines is more than 3.5%.
