K-chart patterns are historically repeated price patterns, that is, they repeat at regular intervals and reflect traders’ emotional reactions to prices.
In USING a K-CHART, TRADERS ARE LOOKING AT THE trading power OF THE MARKET to DISTINGUISH BETWEEN a CONTINUATION OF a trend AND a reversal.
Over the centuries, there have been many variations in the shape of the K-chart, but basically traders divide these patterns into bullish and bearish ones.
The bullish price may rise, while the bearish price may fall.
There is also a neutral form, which means that the market is hesitant and may run amok.
The K-line diagram can be a single K-line, or it can be composed of two, three, or even more than four K-lines.
Above, the form of a K-chart can help traders identify trend reversals and breaks, preferably using both a candle chart and a technical analysis.
