How can a newbie in the crypto world learn to read K-lines? 👀
For beginners in the crypto market, K-lines are the most intuitive "market language". Learning to read them can help avoid detours during price fluctuations.
1. Understand a single K-line first
Opening Price: The starting price of this period
Closing Price: The ending price of this period
Highest/Lowest Price: The extreme fluctuations during this phase
Body: The range between the opening and closing prices, reflecting which side is stronger
Wick: The "traces" of prices that have been reached
👉 Closing price higher than opening price = Bullish Line (up), conversely = Bearish Line (down)
2. Common patterns to remember
Hammer Line: Long lower wick + small body, may reverse at the end of a downtrend
Hanging Man Line: Appears at a high position, may indicate a top
Morning Star: Appears during a downtrend, often a bottom signal
Evening Star: Appears during an uptrend, often a top signal
Engulfing Pattern: The latter completely covers the former, direction may reverse
3. Pair indicators for more reliability
Moving Average (MA): Golden cross = trend upward, death cross = trend weakening
MACD: View the strength of bullish and bearish momentum
RSL: >70 Overbought, <30 Oversold
Trading Volume: Increased volume on rises is more reliable
4. How to practice in real situations?
Use TradingView, Binance/OKX charts to switch between different periods, look at daily charts and 4-hour charts more
Combine with news: Positive/negative news often directly reflects on K-lines
Set stop-loss: Don’t stubbornly hold on, acknowledge losses when breaking key levels
5. Common pitfalls for beginners
Too much faith in a single K-line pattern → Must combine with trends and volume
Only focus on 1-minute charts → High noise, not suitable for beginners
Frequent trading → Easily led by emotions
K-lines are not a crystal ball for predicting the future, but a reflection of market sentiment. Start practicing with daily and 4-hour charts, gradually develop a feel for trends. Don’t rush, there will always be opportunities in the market.
