$ETH Entered the B circle in 2014, has been trading for 15 years, and has been teaching professionally for more than 10 years! The main gameplay is the mainstream currency spot. After laying a solid foundation, it is icing on the cake to do contracts! Start with small funds, low leverage, control risks, and protect the principal under the premise of controllable transactions!
We are more than willing to share industry information and knowledge points beyond technology with you free of charge. We will teach you everything we can!
1.What is K-line?
K-line, also known as "candle chart", may look like a small sausage, but it is actually a prophet in the cryptocurrency world"!
Simply put, K-line is to draw the price fluctuation of the currency within a period of time (such as 1 hour, 1 day) with a "candle". Its four key data are: opening price, closing price, highest price, and lowest price.
Entity: The body of the candle, there are two colors:
Red (bullish line): Closing price > opening price. The price of a coin has gone up!
Green (negative line): closing price<opening price→coin price has fallen!
Shadow: The little braids growing above and below the candlestick:
Upper shadow line: the distance between the highest price and the entity → the ceiling of the fight between bulls and bears."
Lower shadow: the distance between the lowest price and the body is the "floor" where the bulls and bears fight.
For example:
If there is a long red bullish candlestick, it means that the buyers are too aggressive and directly drive the price of the currency from the floor to the ceiling!
If there is a long green negative line, it means that the sellers are brutal and the price of the currency has fallen from the top of the mountain to a deep pit!
2. What secrets are hidden in the body parts of the K-line?
1. Entity length:
Big positive line: The body is thick and a buyer is frantically buying up, the trend may continue to rise!
Big black candlestick: The body is thick and the seller is selling frantically, the trend may continue to fall!
Small Yang/Small Yin: The body is thin and the long and short forces are evenly matched, the market may fluctuate!
2. Shadow length:
Long upper shadow: the price was smashed down after rising halfway → it may be "the immortal's guidance" or it may be a signal of reaching the peak!
Long lower shadow: pulled back halfway after falling → it may be a "golden pit" or a precursor to a rebound!
Tips:
The longer the shadow, the more twisted the bulls and bears become!
The longer the entity, the clearer the trend!
3. Common K-line patterns, understand market sentiment in seconds!
1. Doji:
The real body is extremely small, and the upper and lower shadows are almost the same length, so the long and short positions are evenly matched, and the market is about to change!
Location:
If it rises too much, it may reach its peak!
If it falls too much, it may bottom out!
2. Hammer line:
The lower shadow is very long, and the real body is small → after it falls to the floor, someone will buy the bottom → it may reverse! (Suitable for bargain hunters!)
3. Hanging line:
The lower shadow line is extremely long, but it appears after a continuous rise, so be alert to the main force pushing up the price to sell!
(Run!)
4. Red Three Soldiers:
Three consecutive small positive lines → the trend is steadily upward → keep up!
5. Black Crow:
Three consecutive small negative lines → downward trend → stay away!
4. Practical tips that even novices can use!
1. Look at the volume:
A big rise in K-line + a surge in trading volume, a real breakthrough, just do it!
K-line surges + trading volume shrinks → push up prices to sell, run!
2. Find the key position:
Support level: After falling to a certain position and rebounding several times → possible bottom fishing!
Pressure point: If it rises to a certain position several times and then gets hit again, it may reach the top!
3. Don’t be greedy:
Don’t guess based on a single K-line, look at the combination of 3 or more!
For example, the "Morning Star" (down → small star → up) is a reversal signal, but a single small star is useless!
V. Conclusion
Summary: K-line is the electrocardiogram of the currency circle. If you understand the entity, shadow line and shape, you can predict the rise and fall!
Don’t be superstitious about a single K-line. Combine it with trading volume and key positions to achieve a higher winning rate!
[Star R] The basic composition of K-line
Opening price: the initial transaction price of the trading day.
Closing price: the last transaction price of the trading day.
Highest Price: The highest transaction price during the trading day.
Lowest Price: The lowest transaction price during the trading day.
K-line usually consists of three parts:
Upper shadow line: located above the K-line, it represents the price range between the highest price and the closing price (or opening price, depending on the yin and yang of the K-line).
Body: Indicates the price range between the opening price and the closing price. A positive line (red or white) indicates that the closing price is higher than the opening price, and a negative line (green or black) indicates that the closing price is lower than the opening price.
Lower shadow: located below the K-line, it represents the price range between the lowest price and the opening price (or closing price, depending on the yin and yang of the K-line).
[Star R] K-line interpretation method
Interpretation of a single K-line
Bullish and bearish candlesticks: Bullish candlesticks indicate that the market is rising during that period, while bearish candlesticks indicate a decline.
Entity size: The longer the entity, the stronger the market's attack. The longer the Yang line entity, the more sufficient the upward momentum; the longer the Yin line entity, the greater the downward momentum.
Shadow length: The longer the shadow, the stronger the resistance or support in that direction. The longer the upper shadow, the greater the resistance to rising; the longer the lower shadow, the stronger the support.
Interpretation of K-line combination
V. Conclusion
Summary: K-line is the "electrocardiogram" of the currency circle. If you understand the entity, shadow, and shape, you can predict the rise and fall!
Don’t be superstitious about a single K-line. Combine it with trading volume and key positions, and your winning rate will be higher!
Come on, I’m Xiaoqi, an old investor who sincerely wishes you to get rich in the cryptocurrency world.
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