Recently, there are still many friends who are blindly following the trend and don’t know how to read the market. Today, Brother Dan will talk about the simple knowledge of K-line!
📈📈K-line "Three Views"📈📈
Looking at the K-line chart for currency trading is a must-have knowledge for every investor, and it is also something that needs to be learned for beginners. Faced with all kinds of K-line combinations, beginners can't help but feel a little embarrassed. In fact, the complex K-line can be divided into three simple types. One is to look at Yin and Yang, the second is to look at the size of the entity, and the third is to look at the length of the shadow.
1 Look at Yin and Yang. Yin and Yang represent the trend direction. The Yang line indicates that it will continue to rise, and the Yin line indicates that it will continue to fall. Taking the Yang line as an example, after a period of long-short struggle, the closing price is higher than the opening price, indicating that the bulls have the upper hand. The Yang line indicates that the next stage will continue to rise, at least it can guarantee the inertia of the next stage. On the contrary, the falling power of the Yin line is the same.
2 Look at the size of the entity. The size of the entity represents the internal power. The larger the entity, the more obvious the power of rising or falling, and vice versa. The power is not obvious. Taking the Yang line as an example, its body is the part where the closing price is higher than the opening price. The larger the Yang line body is, the stronger the upward momentum is. The larger the Yang line body is, the greater its internal upward momentum is. Its upward momentum will be greater than that of the Yang line with a small body. Conversely, the downward momentum of the Yin line is the same.
3 Look at the length of the shadow line. The shadow line represents a turning signal. The longer the shadow line in one direction, the less favorable it is for the price to change in this direction. That is, the longer the upper shadow line is, the less favorable it is for the price to rise, and the longer the lower shadow line is, the less favorable it is for the price to fall. Taking the upper shadow line as an example, after a period of long-short struggle, the bulls are defeated. Regardless of whether the K line is Yin or Yang, the upper shadow line has constituted the upper resistance of the next stage, and the probability of price adjustment downward is high.
