Basic knowledge of golden K-line chart: what is the composition of K-line chart?

Analysis of K-line Technology/


Usually, in the gold market, if we want to accurately predict the market trend, we have to make technical analysis on the K-line chart of spot gold, so as to find the right entry and exit points and make profits smoothly. But for the investors who just entered the market, if they don't understand the composition of the K-line chart and its representative meaning, they can't effectively analyze it, let alone make profits. So let's talk about the basic knowledge of K-line chart: what is the composition of K-line chart?


1. What is the composition of the gold K-line chart?


Generally speaking, among the basic knowledge of gold K-line diagram, understanding the composition of K-line diagram is the most basic learning threshold. The so-called K-line chart is actually a vertical rectangular shape composed of opening price, closing price, highest price and lowest price.


Among them, the K line is divided into two kinds: Yang candle and Yin candle. If the closing price is higher than the opening price, it is represented by a positive Candle; conversely, it is a Negative candle. The combination of many groups of candles and a long upward trend indicates that the gold price is rising; similarly, the opposite is a downward trend.


2. How to see the trend of gold price from the K-line chart?


According to different time periods, K-line chart can be divided into minute chart, hour chart, weekly chart and monthly chart on MT4 software of Daejeon global. For short-term investors, they can usually use minute chart and hour chart to judge the short-term price trend of gold; for long-term investment, because hour chart and minute chart will fluctuate frequently, it is easy to see the law, so investors had better cut Change to weekly chart and monthly chart to identify the long-term trend of gold price.


3. How to judge the support point and resistance point of K-line graph?


The point of support and resistance is the point in the K-line diagram that experiences continuous upward or downward. Usually, the point of support is the lowest point in the K-line diagram, while the point of resistance is the highest point. When the support point is broken, gold prices tend to rebound and rise; on the contrary, if the resistance point is broken, it means that gold prices may fall back.


So in general, in the basic knowledge of K-line chart of gold, K-line chart is often composed of opening price, closing price, highest price and lowest price, and investors can often choose the K-line chart suitable for the period of time according to their own investment needs for market analysis, and find the right entry and exit points from the support points and pressure points, so as to obtain better profitability.


[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that they agree with their views or confirm their descriptions. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk

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