Candlesticks: The Crystallization of Oriental Wisdom

The K-line was first invented and used by the Japanese. It is based on the ancient Chinese yin and yang theory and has been used and transformed by investors for nearly a hundred years. The meaning it expresses is quite delicate and sensitive, fully demonstrating the characteristics of Eastern wisdom.

Generally speaking, fluctuations in exchange rates are mostly controlled by political, economic, and psychological factors, so changes in exchange rates are by no means without reason. atforeign exchange marketOn the whole, buyers and sellers are always on opposite sides, and one side's profit is the other side's loss. In order to ensure personal interests, foreign exchange speculators need to predict which buyer and seller will have the advantage the next day, next week, or next month in order to decide to stand on the buyer's front or join the seller's ranks. The K-line is to graphically represent the increase or decrease in the power of buyers and sellers.

The purpose of drawing a K-line chart is not only to identify some representative patterns from the chart, but also to understand the inner meaning of each line, such as the same negative line, which represents a significant difference between high-end and low-end, and must be carefully studied to achieve better results.

The basic drawing method of the K-line is:

(1) The marking includes the opening price, closing price, highest price, and lowest price, etc.

(2) The opening and closing prices are represented by thick lines, which are called entities.

(3) If the closing price is lower than the opening price, it is represented by the negative line.

(4) If the closing price is higher than the opening price, it is represented by a positive line.

(5) If the exchange rate on a certain day is higher than the high price of the entity, it is drawn with a thin line, which is called the upper shadow; if it is lower than the low price of the entity, it is also drawn with a thin line, which is called the lower shadow.