Institutional Perspective on K-Line Interpretation: The Thinking Pattern of Form and Spirit

To truly understand K-Line, one must step out of the retail investor's perspective and adopt the position of institutional players, establishing a 'map maker' thinking pattern rather than merely acting as a 'map viewer.' How do institutions manipulate the market? How are the shapes of K-Line intentionally crafted? How can we discern the flow of funds through K-Line?

1️⃣ Form: The External Shape of K-Line (Map Viewer Perspective)

The 'form' of K-Line refers to its surface characteristics, primarily consisting of four prices:

Opening Price

Closing Price

Highest Price

Lowest Price

Ordinary investors (map viewers) see a large bullish candle and often focus on: How much has it risen? Has it broken through key levels? They try to infer trends from shapes, easily being led by appearances. However, institutions are not map viewers but map makers—they determine the direction of these prices and shape market sentiment.

Note that these shapes are not formed randomly, but are 'made' by institutions. If the K-Line shows an upward trend, it indicates that funds have already been positioned behind it, and institutions have entered the market to push prices up; otherwise, the shape would not naturally form.

2️⃣ Spirit: The Intrinsic Logic of K-Line (Map Maker Perspective)

The true value of K-Line lies not in its shape but in the rising and falling logic and reasons behind it. 'Spirit' refers to the fund logic behind K-Line, that is, why the price moves from the opening to the closing, why today is an increase rather than a decrease?

We need to ask:

Why did this K-Line move from this opening price to this closing price?

Why is today an increase rather than a decrease?

How is the price being pushed?

The answer is simple—K-Line is not randomly generated but is intentionally shaped by institutional funds. They influence price movements through the flow of funds, thereby creating various technical shapes to attract retail investors and ultimately reap profits.

As 'map makers' of the market, institutions control price movements and create market sentiment through fund operations. Their goal is not merely to make prices rise or fall but to guide retail investors into the market by creating visible shapes to achieve their own fund operations.

Institutions control these four prices through the flow of funds, thereby shaping K-Line and ultimately forming charts. Retail investors look at the charts → guided by K-Line → actually being guided by institutional funds.