K line chart, also called candle map, Yin – Yang map.
It is divided into solid part, upper and lower shadow part. When we analyze, we need to pay attention to the magnitude of the solid part, the length of shadow line and the position of shadow line.
The larger the entity, the greater the power of one party.
The longer the upper line, it represents a strong counterattack on the empty side.
The longer the lower line, the stronger the counterattack.
The length of the upper and lower lines is equal, indicating that the long and short sides are evenly matched.
Trading on a K-chart is a unique technique that requires a deep understanding.
Generally speaking, the range of K line entity + shadow line in the market is above 25 points, which is a K line with high effectiveness (K line in 1H chart).
In other words, only the amplitude of more than 25 points of K line trading will be valuable, if the amplitude of 25 points to trade, there will often be false signals (induced more and induced air signals).
The K line can also be used to judge the trend. If there is a rapid and sharp decline in the daily line level for several consecutive days, the trend can be determined to have turned downward.
But at this time should not be low short again, and to wait for the small level (1H, 4H) appear upward rebound, and then from the rebound of the high to take advantage of the short.
It’s more profitable and less risky.
The rise and fall of K line also showed several waves of development.
There are usually three or four waves, or more.
When you have the first wave, it’s basically at the beginning, when you have the second wave, it’s basically at the middle, and when you have the third or fourth wave, it’s basically at the end.
Our best time to trade is in the first wave, the second wave is more developed, try not to trade.
In the third or fourth wave, it’s easy to get caught if you trade.
See K line THE most important point, is also a lot of friends to use a bad point, I emphasize here, I hope you can remember.
“The same K lines appear in different positions, representing completely different meanings.”
For example, the big sun line at the bottom of the downtrend is a bullish reversal signal.
The sun line appears in the middle of the rising trend, is a potential to continue to hold the signal.
Big Yang line appears in the end of rising trend, it is a lure many signals, as long as to do more, certainly set at the top.
See K line trade additionally, cannot analyze single K line or a few K lines only, this is very taboo method.
The right approach is global analysis and local ordering.
For example, some forms, double top, double bottom, flag relay, rising triangle and so on, are dozens of K lines together to analyze, if only analysis of a single K line or a few K lines will be very low success rate, loss will be more.
This is the reason why many people slander K line, in fact, not K line is not good, but some friends will not use.
Hawkish Fed and Omicron jockeyed for market position as U.S. crude oil opened down nearly 3 percent to hit a new two-week low.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
