The K-line chart is an important tool in stock technical analysis, but many novice stock traders do not understand this tool because they have not learned some basic knowledge of K-line charts and related analysis methods. Here's how to understand the K-line chart.

How do novices understand the K-line chart of the stock market? The standard K-line chart is a rectangular parallelepiped with thin lines at the upper and lower ends in two different colors. Investors can see the opening price, closing price, highest price and lowest price of the analysis period from this chart. The middle rectangle is called the real body, and the two ends of the real body are the opening and closing prices of the analysis period. If the closing price is higher than the opening price, the entity is called a positive line and is usually drawn as a hollow rectangle or colored red. If a stock's closing price is lower than its opening price, the entity is called a negative line and is usually drawn as a black rectangle or colored blue. The thin lines at both ends of the entity represent the highest and lowest prices in the analysis period, and the vertices of the two thin lines are the specific prices of the highest and lowest prices. The line connecting the highest price and the real entity is called the upper shadow line, and the line connecting the lowest price and the real entity is called the lower shadow line.

What are the common K-line chart forms? Long red line or big positive line: Stock investors can only see the positive line entity of the K line, and there are no shadow lines at the upper and lower ends of the entity. The occurrence of this pattern means that the highest price of a stock is the closing price and the lowest price is the opening price. Throughout the analysis period, buyers have always been dominant, causing the stock price to rise. Long black line or big negative line: Investors can only see the negative line entity of the K line, and there are no shadow lines at the upper and lower ends of the entity. This pattern means that the highest price for a stock is the opening price and the lowest price is the closing price. Throughout the analysis cycle, sellers have been dominant and the stock price has been falling.

After you understand some basic graphics and structures of the K-line chart, you can learn some K-line chart analysis methods, so that you can roughly judge the future trend of the stock. But novices should not be completely superstitious about K-line charts, because the stock market still has fundamental analysis, so the two must be combined.