K-line Basic Teaching
K-line (Candlestick) is a core tool for recording price fluctuations over a certain period. A single K-line contains four key data points: opening price, closing price, highest price, and lowest price, intuitively reflecting the results of the battle between bulls and bears.
1. Core Interpretation of a Single K-line (Basic)
- Bullish Line (Red/Green, color can be set): Closing price > Opening price, representing bullish dominance, indicating an increase for the day.
- Bearish Line (Green/Red, color can be set): Closing price < Opening price, representing bearish dominance, indicating a decrease for the day.
- Special Patterns:
- No Shadow: No upper or lower shadows, indicating a strong one-sided trend throughout the day (Bullish Line = complete victory for bulls, Bearish Line = complete victory for bears).
- Doji: Opening price ≈ Closing price, with upper and lower shadows that can be long or short, representing intense battles between bulls and bears, with a potential trend reversal.
2. Two Core Dimensions of Viewing K-lines (Practical)
1. Look at Position: A bullish line at a low position may be a "starting signal," while at a high position it may be a "trap for bulls," requiring a judgment based on the overall trend.
2. Look at Combination: A single K-line has limited significance; subsequent K-lines must confirm the signal (e.g., "Bullish Line + Volume Increase" is more credible than a standalone bullish line, "Doji + Next Day Bullish Line" may confirm a reversal).
