Regarding the K-line, there are a few more issues to discuss: Although the K-line looks very simple, the simpler something is, the more difficult it is to use, and it requires rich trading experience.
1. Many people highly regard the naked K-line because it is the simplest and most straightforward form. The so-called path of simplicity seems to suggest that mastering the naked K-line is superior to other technical forms, but this is not the case. The simpler the form, the lower the margin for error, and it requires traders to have rich trading experience. Other indicators are the performance of K-lines presented on the chart after quantification, which are clearer and simpler to read, making them a good choice. For example, using the high and low points of K-lines to find resistance levels requires comprehensive judgment from the trader, whereas using moving averages as resistance levels makes it immediately clear.
2. The K-line is not magical. The K-line only represents the trajectory of price movement. The methods of using K-lines are detailed in many trading books, mainly focusing on the reversal structures and continuation structures of K-lines. At the same time, K-lines can also be combined with other indicators to form trading systems. There are many magical viewpoints on naked K-lines online, which exaggerate the role of K-lines. The K-line cannot predict the future; it can only be used as a standard for judging trends, just like other indicators. We must view and use this scientifically.