#看懂K线 Origin and Definition
The K-line chart originated in the 18th century in Japan's rice market, initially used to represent fluctuations in rice prices. It was later improved by American scholars and applied to the stock market, being referred to as the “candlestick chart.” Each K-line consists of four parts: opening price, closing price, highest price, and lowest price, reflecting price fluctuations through the body (the difference between opening and closing prices) and the upper and lower shadows (the portions exceeding the opening/closing prices).
The “Language” of K-lines
• Bullish Line: The body is usually red, indicating that the stock price is rising, reflecting the dominance of bullish forces.
• Bearish Line: The body is green, indicating that the stock price is falling, reflecting the dominance of bearish forces.
• Doji Star: The body is very small or non-existent, indicating a balance between bullish and bearish forces, possibly signaling a trend reversal.
• Shadow Lines Function: The upper shadow reflects resistance to rising stock prices, while the lower shadow reflects support for falling prices.
