The K-line chart is a chart format commonly used in financial markets such as stocks, foreign exchange, and digital currencies. It provides a visual display of price trends. Each K line represents the price movement within a specific time period.
Each K line consists of four key prices: opening price (Open), closing price (Close), highest price (High) and lowest price (Low). The physical part of the K-line represents the price range between the opening price and the closing price, and different colors or filling methods are used to indicate the rise and fall. If the closing price is higher than the opening price, a green or hollow real body is usually used to indicate an upward trend; if the closing price is lower than the opening price, a red or solid real body is usually used to indicate a downward trend.
In addition, the upper and lower shadows of each K line represent the highest and lowest points of the current price, providing more detailed price range information.
K-line charts can display different price trends through different time periods (such as 1 minute, 5 minutes, 1 hour, 1 day, etc.), helping traders analyze market trends, determine buying and selling opportunities, and formulate trading strategies.
Specifically, the composition of the K line is as follows:
- Upper Shadow: The upper extension of the vertical line segment, indicating the price range between the highest price in the time period and the upper end of the entity.
- Lower Shadow: The lower extension of the vertical line segment, indicating the price range between the lowest price in the time period and the lower end of the entity.
- Body: The middle part of the vertical line segment, representing the price range between the opening price and closing price within that time period. If the closing price is higher than the opening price, the real body is usually filled or green; if the closing price is lower than the opening price, the real body is usually hollow or red.
