财经少华
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How to Find Bottom Signals in K-Line Patterns?
The concept of bottom building can be understood separately; the "bottom" refers to a relative low point after a significant decline in the price of a cryptocurrency, while "bottom building" is like a wooden pile standing upright from the ground in the K-Line pattern.
After a prolonged deep adjustment in the cryptocurrency price, bullish forces begin to counterattack, with trading volume gradually increasing, shifting from mere existing stock speculation to new capital entering the market. Consequently, bullish strength begins to dominate, the price continues to rise, buying enthusiasm continues to heat up, and ultimately, a K-Line pattern emerges showing a bullish candle with a long lower shadow, which is a typical signal of a stage bottom.
Key Techniques:
1. There has been a clear decline before the pattern appears (however, it is also possible that the piling pattern occurs during a consolidation phase).
2. The bullish candle closes, with a relatively large body that is not less than 6% (if it occurs in an index, the index's bullish candle body typically will not be less than 3%).
3. Both the upper and lower shadows are relatively short, or even non-existent.
4. There is significant trading volume on that day.
5. It usually appears on days when the price has fallen excessively (triggered by technical factors) or when good news is announced (triggered by news factors).
The concept of bottom building can be understood separately; the "bottom" refers to a relative low point after a significant decline in the price of a cryptocurrency, while "bottom building" is like a wooden pile standing upright from the ground in the K-Line pattern.
After a prolonged deep adjustment in the cryptocurrency price, bullish forces begin to counterattack, with trading volume gradually increasing, shifting from mere existing stock speculation to new capital entering the market. Consequently, bullish strength begins to dominate, the price continues to rise, buying enthusiasm continues to heat up, and ultimately, a K-Line pattern emerges showing a bullish candle with a long lower shadow, which is a typical signal of a stage bottom.
Key Techniques:
1. There has been a clear decline before the pattern appears (however, it is also possible that the piling pattern occurs during a consolidation phase).
2. The bullish candle closes, with a relatively large body that is not less than 6% (if it occurs in an index, the index's bullish candle body typically will not be less than 3%).
3. Both the upper and lower shadows are relatively short, or even non-existent.
4. There is significant trading volume on that day.
5. It usually appears on days when the price has fallen excessively (triggered by technical factors) or when good news is announced (triggered by news factors).
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