【Cryptocurrency K-Line Beginner's Guide】Even a novice can understand the trading secrets in a flash!
Why do others read K-lines like scripts, while you feel like you're reading hieroglyphs?
Today, I will use the simplest language to help you decipher the K-line secrets in the crypto world, and after reading this, you can say goodbye to the 'retail investor mentality'! It's recommended to bookmark this for gradual digestion!
【K-Line Basics: Understand What K-Lines Look Like in 3 Minutes】
K-lines are like the 'electrocardiogram' of the crypto world, recording the traces of every transaction, with 4 core data points:
Highest Price: The highest point reached during the day
Lowest Price: The lowest point reached during the day
Three Key Elements of K-Lines (more intuitive with the image!):
▫️ Upper Shadow: The 'little tail' on top, representing resistance encountered when prices rise
▫️ Body: The 'body' in the middle, bullish candle (red/white) = closing price > opening price, bearish candle (green/black) = closing price < opening price
▫️ Lower Shadow: The 'little tail' below, representing support encountered when prices fall
【K-Line Interpretation: Single and Combination, See Through the Main Force's Strategies】
How to analyze a single K-line?
✔️ Bullish/Bearish Candles: The more bullish candles, the stronger the uptrend; the more bearish candles, the stronger the downtrend
✔️ Length of the Body: The longer the body, the more extreme the buying or selling pressure (for example, a large bullish candle = signal of a surge)
✔️ Secrets of Shadows: A long upper shadow = the price has stopped rising, a long lower shadow = the price has stopped falling!
Classic K-Line Combinations (often seen in the crypto world!)
Double Bottom (W Bottom) vs Double Top (M Top):
W bottom looks like a 'pit', a sudden rebound from the bottom is a signal to buy; M top looks like a 'mountain peak', fluctuating at a high position, be careful of reaching the top!
Head and Shoulders Top/Bottom: Looks like a person's head and shoulders, a head and shoulders top is an 'escape signal', while a head and shoulders bottom is a 'buy signal'!
Cross Star: Opening price = closing price, balance between buyers and sellers! Appearing at a high position means to sell, appearing at a low position may indicate a reversal～
Red Three Soldiers/Three Black Crows: Three consecutive bullish candles = prelude to a surge, three consecutive bearish candles = warning of a crash (but pay attention to the context!)
【Advanced Techniques: K-Line + Position + Volume, Doubling the Winning Rate】
1️⃣ Look at the position:
A long upper shadow appearing in the early stage of an uptrend = the main force testing the market, don’t rush to sell;
A long upper shadow appearing in the late stage of an uptrend = the main force offloading, hurry to take profits!
2️⃣ Look at the volume:
Increasing volume during an uptrend = real rise! The larger the trading volume, the more reliable the uptrend;
Decreasing volume during a downtrend = false drop! If no one is selling, there may be a rebound
