In the trading process, understanding K-line language can yield twice the results with half the effort. Below is a comprehensive guide summarizing K-line patterns from single formations to trend practical strategies! You will definitely find this useful!
1. Core Secrets of Single K-line
1. Bullish Signals
① No shadow bullish line: Strong bullish control, appears at a low position or becomes a reversal starting point
② Bullish line with shadow: Long upper shadow meets resistance, long lower shadow receives strong support
2. Bearish Warnings
① Large bearish line: Bearish pressure, caution against trend reversal at high position
② Long lower shadow bearish line: After bearish pressure, bullish counterattack, hiding a turning point
3. Special Patterns
① Long doji: Bulls and bears in a standoff, key position appears or triggers a trend storm
② Hammer/Inverted hammer line: Reversal signal at the end of a trend, a tool for bottom fishing and top escaping
2. Winning Strategies of K-line Combinations
Combination Pattern Occurrence Scenario Trading Signal
Morning Star End of downtrend Decisively go long
Evening Star Top of uptrend Timely go short
Rising Three Methods Uptrend continuation Buy on pullback
Falling Three Methods Downtrend continuation Sell on rebound
3. Trend Positioning Trading Rules
1. Uptrend: Relying on trend lines/moving averages, buy when retracement stops falling
2. Downtrend: Touching resistance level stagnates rise, decisively go short at rebound high
3. Consolidation Phase: Keep a close eye on breakout + volume cooperation, chasing the trend is more reliable
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