"Three Views" of K-line

Looking at K-line charts for cryptocurrency trading is knowledge that every investor must have, and it is also something that needs to be learned for beginners. Faced with various K-line combinations, beginners can't help but feel a little embarrassed. In fact, complex K-lines 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. Yang lines indicate that they will continue to rise, and Yin lines indicate that they will continue to fall. Taking Yang lines 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. Yang lines indicate that they will continue to rise in the next stage, at least they can guarantee that they can rush upward by inertia in the early stage of the next stage. On the contrary, the downward momentum of Yin lines 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 Yang lines as an example, the entity is the part where the closing price is higher than the opening price. The larger the entity of Yang lines, the more powerful the rise. The larger the entity of Yang lines, the greater the internal power of rising. The power of rising will be greater than that of Yang lines with small entities. On the contrary, the downward momentum of the negative 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 currency price to change in this direction. That is, the longer the upper shadow line, the less favorable it is for the currency price to rise, and the longer the lower shadow line, the less favorable it is for the currency 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 negative or positive, the upper shadow line has constituted the upper resistance of the next stage, and the probability of price adjustment downward is high.