#看懂K线 Quick Understanding of K-Line: From Basics to Key Points in Practical Application

I. Basic K-Line Patterns and Meanings

• Single K-Line Structure:

◦ Body: The range between the opening price and the closing price, the body color (red/green) indicates the rise or fall—closing price > opening price is a bullish line (green), conversely a bearish line (red).

◦ Upper and Lower Shadows: The parts exceeding the body for the highest and lowest prices, the longer the shadow, the greater the price fluctuation.

• Common Single K-Line Signals:

◦ No Shadow Bullish Line: No upper or lower shadows, closing price = highest price, strong bullish momentum.

◦ Doji Star: Opening price ≈ closing price, very short body, balance between bulls and bears, may indicate a trend reversal point.

◦ Long Upper Shadow: Price rises and then falls back, heavy selling pressure above, may indicate a peak.

II. K-Line Combinations and Trend Judgments

• Bullish Signals:

◦ Bullish Engulfing: The body of the following bullish line completely covers the previous bearish line, bullish counterattack.

◦ Morning Star: A combination of three K-Lines (bearish line + doji star + bullish line), a bottom reversal signal.

• Bearish Signals:

◦ Bearish Engulfing: The following bearish line covers the previous bullish line, bears are dominant.

◦ Evening Star: A combination of three K-Lines (bullish line + doji star + bearish line), a top reversal signal.

• Consolidation Signals:

◦ Rectangular Consolidation: K-Lines fluctuate up and down within a parallel range, no clear trend, waiting for a breakout direction.

III. Key Technical Indicators Combined with K-Line

• Moving Averages (MA):

◦ Short-term moving averages (such as 5-day, 10-day) crossing above long-term moving averages (such as 20-day, 60-day), forming a “golden cross”, bullish; conversely, a “death cross” is bearish.

• Trading Volume:

◦ Volume increases during an uptrend, validating the trend’s effectiveness; volume decreases during a downtrend, may indicate a bottoming out.

• MACD:

◦ The DIF line and DEA line golden cross and the histogram turning from green to red is bullish; a death cross and the histogram turning from red to green is bearish.

IV. Key Points to Avoid Pitfalls in Practice

• Do not solely rely on K-Line: K-Line should be judged in conjunction with the overall market environment, sector heat, and fundamentals (such as project announcements) (Example: A certain cryptocurrency's K-Line shows a “bullish engulfing,” but regulatory news is negative, it may continue to decline).

• Pay attention to cycle differences:

◦ 1-hour K-Line is suitable for short-term trading, daily/weekly lines are more suitable for medium to long-term trends (Example: A short-term K-Line shows a “doji star,” but the weekly line is still in an upward channel, it may just be a short-term adjustment).