Understanding K-Line Charts: A Comprehensive Guide to Price Trends in Trading

What is a K-Line Chart?

K-line (or candlestick) charts display four key price points for a given period:

• Opening price
• Closing price
• Highest price
• Lowest price

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Key Components

• Bullish candle (阳线): Closing price > Opening price (typically red/green)
• Bearish candle (阴线): Closing price < Opening price (typically black/blue)
• Body (实体): Rectangle between opening/closing prices
• Upper shadow (上影线): Line above the body (high price)
• Lower shadow (下影线): Line below the body (low price)

Types of K-Line Charts

| Timeframe | Description |
|-----------|-------------|
| Daily (日K线) | Single day's price movement |
| Weekly (周K线) | Monday open → Friday close |
| Monthly (月K线) | First trading day → Month end |
| Annual (年K线) | Year-start → Year-end |

12 Essential Candlestick Patterns

1. Bald Yang Line (光头阳线)

   • Indication: Strong bullish momentum

2. Bald Yin Line (光头阴线)

   • Indication: Bearish dominance

3. Inverted Cone Yang (倒锥形阳线)

   • Watch upper shadow length for resistance clues

4. Inverted Cone Yin (倒锥形阴线)

   • Potential downtrend signal

5. Yang Line with Shadows (带上下影线的阳线)

   • Caution: Weak upward momentum

6. Yin Line with Shadows (带上下影线的阴线)

   • Opportunity: Possible rebound

7. Long-Legged Doji (大十字星)

   • Breakout hint: Direction depends on shadow length

8. Short-Legged Doji (小十字星)

   • Expectation: Consolidation

9. Conical Yang (锥形阳线)

   • Longer lower shadow → Stronger bullish case

10. Conical Yin (锥形阴线)

    • Lower shadow length indicates rebound potential

11. Gravestone Doji (墓碑形)

    • Warning: Potential price drop

12. T-Line (T形)

    • Signal: Possible upward reversal

How to Read K-Line Graphs

1. Color Coding

   • Red/Green = Price increase
   • Black/Blue = Price decrease

2. Special Cases

   • Identical all prices → "One-Line" pattern (一字板)

3. Moving Averages

   • 5-day (gray), 10-day (purple), 20-day (yellow), 30-day (blue)

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Volume Analysis

• Tall volume bars = High trading activity
• Short volume bars = Low participation
• Green volume = Bullish day
• Red volume = Bearish day

FAQ Section

Q1: Why are weekly/monthly K-lines important?
A: They smooth out daily volatility, revealing stronger trends.

Q2: How do shadows predict price movements?
A: Longer upper shadows suggest selling pressure; longer lower shadows indicate buying support.

Q3: What's the best timeframe for beginners?
A: Daily charts provide the ideal balance of detail and clarity.

Q4: How reliable are candle patterns alone?
A: Always combine with volume analysis and other indicators for confirmation.

Q5: Can K-line analysis be used for cryptocurrencies?
A: Yes, the principles apply equally to crypto and traditional markets.

Historical Context

Developed in 18th-century Japan for rice trading, K-line charts were adapted to modern financial markets in the 1990s. Their visual clarity makes them superior to Western bar charts for:

• Trend identification
• Support/resistance detection
• Reversal prediction

Note: This guide contains no promotional content or external links except specified OKX resources. All trading examples are for educational purposes only.