Generally speaking, we all observe the price changes through the K-line chart. Therefore, the price behavior trading method is to infer the price trend by observing the naked K-line chart without borrowing any technical indicators.
Now, we begin to learn the price behavior trading method without using any technical indicators. There will be a step-by-step analysis below, which will specifically introduce you how to use the naked K-line diagram. If you are already using this method, you can review it again to consolidate the foundation. Maybe you will find something new.
Step 1: Understand the market structure.
Many traders have great problems in their trading decisions, and many decisions are invalid. Before they place an order, it is often easy to ignore the market structure.
Understanding the market structure is the basis of reading the naked K-line chart. Understand the market structure, you will know "where the market wind blows". This is like a process of returning to the essence of the market, but many people don't pay attention to it.
Market structure is a basic technical analysis, which is very important. You should incorporate it into your trading decision. If you don't know what the market structure is, don't worry, it's actually easy to understand.
Market structure refers to the arrangement and connection of peaks and lows on the chart, specifically, it refers to the connection of all price extreme points in the process of price operation, forming a curve of fluctuation. When the curve connection is successful, it can help you judge the market trend.