How do beginners look at the chart and K line? What do you know about the 24 kinds of classic illustration of foreign exchange K-line chart?
What is the K line?
In fact, to say how to see the long and short through the foreign exchange K-line chart, the key lies in how to look at the Yin and Yang lines of the K-line. Through summary and analysis, it is found that foreign exchange investors can better grasp the long short trend in the K line and obtain trading opportunities by using some methods and skills.
1. Look at the trend of Yin Yang line
Yin and Yang represent the trend of emptiness. The main line indicates an upward trend and may continue to rise. A negative line indicates a downward trend and may continue to decline. Generally speaking, if there are more negative or positive K lines in succession, it means that the price adjustment or rebound will increase in the later period. At this point, investors can invest some money to short or do more ahead of time. More or less content can be added after judgment and confirmation in technical analysis.
2. Look at the size of yin and Yang lines
The size of the yin-yang line represents the internal power. The larger the entity, the more obvious the upward or downward trend. On the other hand, the trend is relatively vague. Take the main line as an example. If the larger the main line entity, the greater the internal lifting force, the more fully motivated the bull. Similarly, the larger the negative line entity is, the more sufficient the reduced power will be.
3. Look up and down the shadow line
In the foreign exchange chart K, the shadow line shows the turning signal of market trend. If the shadow line is longer in one direction, the more unfavourable the price changes in that direction. In other words, the longer the shadow line, the more adverse the price rise. The longer the shadow line, the less favorable the price drop. Take the shadow line as an example. After a long period of short position competition, short sellers will suffer heavy losses, so the possibility of price rebound is greater. Similarly, overhead line means that the possibility of price reduction is greater, which requires investors to choose long short trading according to the actual situation.
In short, in order to make profits in the foreign exchange market, investors are better to learn and master some K-line analysis skills.