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Basic knowledge of stock k-line chart and k-line chart diagram

2026-09-13 00:08
2026-09-13 04:40

The K-line chart was one of the main technical analysis methods in the financial market. It was like a diary of the stock market, recording the price changes of the stock over a certain period of time. Each K-line contained four important numbers: the opening price, the closing price, the highest price, and the lowest price. The K-line chart used colors, entities, and shadows to describe the direction of the rise and fall, the range of the rise and fall, and the highest and lowest prices. It was concise, intuitive, complete, and thorough to reflect the trading market. It originated from Japan's candle chart. The commonly used classic K-line forms included the engulfing form, pregnancy line, hammer line, Venus, three crows, and so on. Each K-line form revealed the facts of the disk under a specific market. The red K line was also known as the positive line. The longer the physical energy in the middle, the greater the advantage of the bulls in this trading day, and the next trading day may continue to rise. The green K line was also known as the negative line. The longer the physical energy in the middle, the greater the advantage of the bears in this trading day, and the next trading day may continue to fall. The Changyang line was the K line with a longer physical part and a closing price that was significantly higher than the opening price. The appearance of the Changyang line at the bottom indicated that the market may have the main capital entering the market or the panic was released. The re-accumulation of many forces was an early sign of the trend reversal; the Changyang line in the middle of the consolidation appeared in the stalemate stage of both sides. The physical part of the long Yinxian line was usually longer, and the closing price was much lower than the opening price, sometimes even close to the lowest price of the day, often accompanied by huge trading volume. The long Yin line at the top often breaks the previous upward trend, which is a reversal signal; the long Yin line at the bottom needs to be combined with the trading volume. If the stock price falls and the trading volume is low, the market may continue to fall. If the volume is high, there is a high probability that the bottom will form the market will rise; The long Yin line on the way up indicates that the stock is overbought and some funds need to be realized, but about 40% of this situation occurs, the stock price can still continue to rise; On the way down, the long Yinxian line was the fuel for the stock price to fall. If the trading volume was not enlarged, it would still fall. If it was enlarged, it might determine the bottom. The long Yinxian line in the consolidation meant that the stock failed to break through the pressure level, and the bears dominated and started a new decline. The purpose of the K-line chart was more to discover the facts of the market. Professional traders would formulate trading strategies based on the facts of the market rather than predicting the trend of the market. When learning the K-line knowledge, they needed to keep in mind that the long signal did not mean that the market was rising, the market was rising did not mean that it was appropriate to buy, and the appropriate buying point did not mean that it was stable and profitable. While watching the Olympics, you can also read the wonderful novels related to the Olympics!

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