#看懂K线 Understanding Candlestick (Candlestick chart, also known as K-line) is the first step to mastering technical analysis. It can help traders understand market sentiment, judge price trends, and find buying and selling opportunities. Below is a systematic explanation of how to understand Candlestick charts:
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🧱 What is a Candlestick?
A Candlestick consists of four key data points:
Opening Price (Open)
Highest Price (High)
Lowest Price (Low)
Closing Price (Close)
A single Candlestick usually represents price changes over a time period (such as 1 minute, 1 hour, 1 day, 1 week, etc).
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🔍 Basic Structure of a Candlestick
Upper Shadow
│
┃ ← Highest Price
┌──────┐
│ │ ← Body (Red/Green)
└──────┘
┃ ← Lowest Price
Lower Shadow
Bullish Candlestick (Upward): Closing Price > Opening Price → Generally red or green
Bearish Candlestick (Downward): Closing Price < Opening Price → Generally black or blue
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📊 Common Patterns of a Single Candlestick
Candlestick Pattern Characteristics Meaning
Bullish Candlestick Long body, no/short shadows Strong upward movement
Bearish Candlestick Long body, no/short shadows Strong downward movement
Doji Opening Price ≈ Closing Price, long shadows Market indecision, possible reversal
Hammer Long lower shadow, small body Bottom signal, possible rebound
Hanging Man Long upper shadow, small body Top signal, possible decline
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🔗 Combinations of Multiple Candlesticks (Common Reversal Signals)
Pattern Characteristics Market Meaning
Engulfing Pattern (Reversal) The latter Candlestick completely engulfs the former Reversal signal (Bullish or Bearish)
Morning Star/Evening Star Consists of three Candlesticks, resembling “stars” Morning Star bullish, Evening Star bearish
Shooting Star Bullish Engulfing/Bearish Engulfing, bodies covering each other Reversal signal
Three White Soldiers/Three Black Crows Three consecutive bullish/bearish Candlesticks Strong trend continuation
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📈 How to Use Candlesticks to Determine Trends?
1. Uptrend: Higher highs and higher lows (Bullish)
2. Downtrend: Lower highs and lower lows (Bearish)
3. Sideways Consolidation: Price fluctuates up and down, no clear direction
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✅ Candlestick Practical Tips
Combining with moving averages, trading volume, and support/resistance levels yields better results
Do not rely solely on Candlestick patterns; pay attention to trends and positions
Reversal Candlesticks near important support/resistance levels are more effective