The 5-day moving average represents the average transaction price of the stock in the last 5 days, the 10 moving average represents the average transaction price of the stock in the last 10 days, and the 20-day moving average represents the average transaction price of the stock in the last 20 days. The three moving averages in the stock K-line chart reflect the running trend of the price as a whole. Through its running trend, users can judge whether stocks are bought or sold, and of course they need to refer to other indicators. Here, the average index is an important indicator reflecting the price trend. Once it is formed, it will last for a period of time.

The black line is the weighted stock index, and the market does not include the weighted index, that is, regardless of the size of the stock sector, the market index calculated by treating all stocks as the same influence on the index is mainly of reference value to large-cap stocks.

1, the basic composition of K line

K-line is a columnar line, which consists of shadow lines and entities. Among them, the shadow line represents the highest and lowest price of the day's transaction, and the entity represents the opening price and closing price of the day. The hatched part above the entity is called the upper hatched line and the lower hatched line. Entities are divided into positive and negative lines.

2.k-line classification

According to the calculation cycle of K-line, it can be divided into daily K-line, weekly K-line, monthly K-line and annual K-line. Weekly K-line refers to the K-line chart drawn with the opening price on Monday, the closing price on Friday, the highest price and the lowest price in the whole week. The monthly K-line is based on the opening price of the first trading day of a month, the closing price of the last trading day and the highest and lowest prices of the whole month. The definition of annual K-line can also be derived. Weekly K-line and monthly K-line are often used to judge the mid-term market.

3. History of K-line

K-line chart, also known as candle chart, daily line, yin-yang line, bar line, etc. , commonly known as "K-line", has been widely used in stock, futures, foreign exchange, options and other securities markets. The rice market transaction originated from the Tokugawa shogunate era in Japan in the18th century, and was used to calculate the daily rise and fall of rice prices. Because of its unique drawing method, it is introduced into the analysis of stock market price trend.