Definition
A K-line, commonly referred to as a candlestick chart in Western markets, is a graphical representation of price dynamics for a security, derivative, or currency. It displays four key data points: the opening price, closing price, highest price, and lowest price within a defined period. The body of the ‘candle’ shows the range between open and close, while wicks indicate the high and low extremes. Traders use these patterns to identify market trends, reversals, and potential entry or exit points based on historical price action.
Summary
A type of financial chart, also known as a candlestick chart, used to visualize price movements over specific time intervals.
Key Concepts
- Candlestick Chart
- OHLC Data
- Technical Analysis
- Market Trends
Use Cases
- Stock market technical analysis
- Cryptocurrency trading visualization
- Identifying support and resistance levels