#看懂K线 K line chart (candlestick chart) is the core tool of technical analysis in the cryptocurrency market, composed of the body (the difference between the opening and closing prices) and the wicks (the fluctuations between the highest/lowest prices and the body). A bullish candle (usually green) indicates that the closing price is higher than the opening price, signaling an upward trend; a bearish candle (red) indicates the opposite. Key patterns include:
1. Hammer (long lower wick): may indicate a reversal in a downtrend.
2. Doji: balance between buyers and sellers, signaling a potential change in trend.
3. Large bullish/bearish candle: the longer the body, the stronger the trend.
Combining trading volume and moving averages (such as golden cross/dead cross) can improve judgment accuracy, but one should be aware of the limitations of a single candlestick and it is recommended to conduct a comprehensive analysis across multiple time frames.