Last night, I posted a student's notes in the group, and they went viral within half an hour.
I have organized it into the following text, serving as the 'first lesson' for new fans:
I have been staring at K-lines for three years and finally understood one thing: K-lines themselves do not speak; they merely project the 'voice' of the operators on the screen. Want to predict the future with a few candles?
No way; but if you can understand the operators' hidden language, at least you won't be led around by the nose.
I have summarized three commonly used hidden phrases to share with you.
Hidden Phrase One: False Breakout, Real Lift
The script usually goes like this: the price suddenly breaks through important support, and the comments section immediately wails. Retail investors see the breakout and panic sell. However, the operators quietly buy back the chips and lift the price back above support before the market closes.
Identification Method:
1. Look at the closing price. If the 1-hour K-line breaks support and then closes back above, it is likely a washout.
2. Look at the trading volume. A sudden increase in volume at the breakout, but a decrease in volume during the rebound, with obvious signs of wash trading.
Hidden Phrase Two: Alert of Volume-Price Divergence
When the price hits a new high, but the volume decreases — a typical 'false prosperity.' Conversely, when the price is stagnant but the volume suddenly increases, it is likely that the operators are quietly accumulating.
Last year, I suffered a loss in a popular cryptocurrency: the daily line reached a new high, but the volume shrank day by day, resulting in a sharp drop three days later, wiping out all profits.
Hidden Phrase Three: Crisis of High-Level Consolidation
Sideways movement is not rest; it is dividing the spoils. Bottom-sideways means operators are accumulating; top-sideways means operators are distributing.
Distinction Method: 1. Bottom-sideways, volume gradually increases, and bearish candles are quickly engulfed by bullish candles.
2. Top-sideways, volume gradually decreases, and bearish candles slowly engulf bullish candles. Once accompanied by a surge in open interest, the storm is coming.
Are K-lines useful?
Yes, but don't just look at the ups and downs; you need to read the intentions behind them.
When you can understand these three hidden phrases, the market will be like a movie with subtitles, and the plot will be clear at a glance.
For those who don't want to go in circles, follow @小花生说币 and see what the operators are plotting.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.See T&Cs.
