#看懂K线 Understand the Basic Composition of K-Line

Color: Red (or hollow) represents a bullish candle, indicating that the closing price is higher than the opening price, and the stock price is rising; Green (or solid) represents a bearish candle, indicating that the closing price is lower than the opening price, and the stock price is falling.

Body: The area between the opening price and closing price, reflecting the main fluctuation range of the stock price.

Shadow: The part protruding from the body; the upper shadow indicates the difference between the highest price and the closing price (or opening price), while the lower shadow indicates the difference between the lowest price and the opening price (or closing price). The longer the shadow, the greater the price fluctuation.

Analyzing K-Line Patterns

Bullish Candle and Bearish Candle: The body is relatively long, indicating a clear market trend; a bullish candle is bullish, while a bearish candle is bearish.

Doji: The opening price and closing price are close, with a very small body, indicating a balance of power between bulls and bears, which may signal a trend reversal.

Hammer and Hanging Man: Small bodies with long lower shadows, appearing at the bottom of a downtrend may be a buy signal, while appearing at the top of an uptrend may be a sell signal.