#看懂K线 📈 Understanding Candlestick Charts = Understanding Market Sentiment! Stop Making Blind Trades!

In the cryptocurrency world, candlestick charts can be overwhelming for beginners, but actually:

As long as you understand the information contained in a single candlestick, you are already ahead of 80% of people👇

🧱 1. What is a Candlestick Chart?

📌 Candlestick = The 'price trajectory' over a specific time period.

Each candlestick provides you with four prices:

Meaning Explanation

Opening Price The price at the beginning of a time period

Closing Price The price at the end of that time period

Highest Price The highest point reached during the period

Lowest Price The lowest point reached during the period

🟢 2. How to Interpret Candlestick Colors?

Green/Red reversed? Commonly used in cryptocurrency:

✅ Green Candlestick: Price increased (Closing > Opening)

❌ Red Candlestick: Price decreased (Closing < Opening)

🔹 Long Upper Shadow: Price has been pushed down → High resistance above

🔹 Long Lower Shadow: Price has been pulled back → Support below

🔍 3. Three-Step Method to Read Candlestick Charts (suitable for beginners)

① Look at the Trend Direction

A series of green candles → Upward trend

A series of red candles → Downward trend

Alternating candles → Consolidation phase (don’t rush in)

② Look at Key Patterns

Pattern Meaning Example

Long Green Bar Strong upward movement, buying pressure strong Consider following the trend

Long Upper Shadow Lack of upward momentum, false breakout Wait or reduce position

Doji Strong uncertainty between buyers and sellers Possible reversal, wait for confirmation

Engulfing Pattern One candlestick 'engulfs' the previous one Common reversal signal

③ Look at Volume Confirmation

📈 Increase in volume during rise = True breakout

📉 Decrease in volume during rise = False increase (be cautious of being trapped)

🧠 4. How to Choose Common Time Periods?

Time Period Usage

1 Minute/5 Minutes For short-term/contract trading

15 Minutes/1 Hour For intraday trading reference

4 Hours/1 Day To gauge trend direction, more stable

✅ Suggestion for beginners: Start with 1 hour and 4 hour charts, avoid 1 minute charts to prevent being influenced by noise

✅ Summary in one sentence:

Candlesticks don’t lie, but people often deceive themselves. Learning candlesticks is like learning the language of the market.