#看懂K线 K Line analysis can be simplified into the following core points, helping you quickly grasp the key logic:
1. Core characteristics of K Line (Differences from traditional markets)
- 24-hour continuous trading: Choose K Line period based on holding period (short-term look at minute K, long-term look at daily/weekly K).
- High volatility + no limit on price fluctuations: Long shadows and long bodies often reflect extreme market conditions (e.g., daily fluctuations exceeding 20%), reversal patterns need to be combined with market sentiment (e.g., positive/negative news).
2. Key pattern mnemonic
1. Single K Line signals
- Long bullish line (increased volume): Short-term strength, beware of major players “lifting the market to sell off”.
- Long bearish line (increased volume): Negative news or market sell-off, consecutive bearish lines may indicate a bear market.
- High position doji star: Disagreement between bulls and bears, a bearish close the next day may signal a top (this combination is often seen at historical highs).
2. Combination pattern practical application
- Tweezer top/bottom: Two K Lines with close highest/lowest points, forming resistance/support levels (e.g., a certain coin retreats after hitting the same price twice).
- Three push pattern: Three failed attempts to break the same resistance level, low probability of breakout, need to guard against pullback.
- Sharp top/sharp bottom: Rapid rise or fall (e.g., influenced by news), the pattern may fail, need to react quickly to news.
3. Unique analytical dimensions for cryptocurrencies
- On-chain data assistance:
- Price rises but on-chain transfer volume is low, may indicate “false uplift” by exchanges; when large holders increase positions while price drops, it may indicate wash trading.
- Correlation of mainstream coins:
- When BTC rises, most altcoins follow; when BTC faces resistance, altcoins may drop first; small-cap coins (e.g., MEME coins) may trend independently due to speculation, but beware of sharp declines.
- High leverage traps:
- “Spike” (ultra-long shadows) may indicate major players exploding contracts, at this time, the reference value of support/resistance levels decreases.
4. Practical strategy (simplified version)
1. Determine direction with large cycles: Focus on going long when the weekly K trend is upward, reduce long operations during breakdowns.
2. Find entry points with small cycles: For example, if the daily K shows a “hammer line + bullish line”, and the hourly K forms a “engulfing pattern”, consider light long positions at support levels.
3. Stop-loss and take-profit: Set stop-loss at the recent lowest point of the last K line below the buying price (2%-5%), take profit based on previous highs or Fibonacci lines (e.g., take profit at the 0.618 level after a 50% rise).
5. Risk reminder
- News priority: K Lines are lagging.