Understanding K-line Analysis #看懂K线

The K-line chart is the core tool for cryptocurrency trading, showcasing price fluctuations. A single K-line includes the opening price, closing price, highest price, and lowest price, with the body reflecting the price direction and the wicks showing the range of fluctuations. Red (bullish) indicates an increase, while green (bearish) indicates a decrease. Common patterns such as 'Hammer' and 'Shooting Star' suggest reversals, while 'Engulfing Pattern' hints at trend continuation. Combining with time periods (like 1 minute, 1 day), short-term traders focus on rapid fluctuations, while long-term investors analyze trends. K-lines should be paired with indicators like moving averages and RSI, and one should be cautious of false breakouts. Mastering K-line interpretation and understanding market sentiment aids in precise trading.