How to treat digital currency K-line chart? What do you think of the chart of digital currency? Many novices are confused when they first enter the currency circle and see the K-line chart, which is a compulsory course to enter all secondary markets. We call the K-line chart, also called the candle chart, which originated in the Tokugawa shogunate era in Japan. Sakamoto was invented for a long time and was first used to record the rice market. Later, it was introduced to the stock market and futures market because of its ingenious and unique drawing method. Through the K-line chart, we can see the changes of the opening price, closing price, highest price and lowest price of the market in a certain period.
Let's first look at the K-line screenshot of Huobi.com:
This picture is the daily K-line chart of BTC (Bitcoin).
The horizontal axis is time (in days), the vertical axis is US dollars (in dollars), and the red and green columns in the figure are separate K lines. Each K-line (bar) represents the price change of the market in one day. Connect the K-lines of every day to get the K-line chart reflecting the changing trend of the market.
K-line interpretation
Two pictures make the K line clear:
Each K line represents four prices in a day: the highest price, the lowest price, the opening price and the closing price. Draw the part between the opening price and the closing price as a "rectangular entity", and connect the highest price and the lowest price to form a K-line.
When the closing price is greater than the opening price, the column is green and the price rises, which is called the positive line.
When the closing price is lower than the opening price, the column is red and the price falls, which is called the negative line.
Note: In China stock market, the positive line is red and the negative line is green; In some drawings, it is also recognized that the positive line is a solid cylinder and the negative line is a hollow cylinder.
No matter the yin line or the yang line, the straight line protruding upward from the column is collectively called the upper shadow line, and the straight line protruding downward from the column is collectively called the lower shadow line.
Now let's look at the actual K-line chart and see how to use the K-line chart to judge the market trend!
Single needle priming
Let's look at the K-line chart of BTC in February:
After standing at the highest point of 20,000 points on February 17 last year, the market continued to fall until it reached the red circle position, forming the first strong rebound.
Pay attention to the k-line shape of the red circle. The column itself is short, the upper shadow line is very short and almost absent, but the lower shadow line is particularly long. This K-line is a strong bottoming reversal signal, which is called hammer line. The upper shadow line disappears, which is also called single needle bottoming.
Let's list the judgment basis of hammer line:
1. is in a continuous downward trend, and the bottom is in the lowest price of downward trend;
2. The entity is at the top of the whole interval, and the color doesn't matter;
3. The length of the lower shadow line is at least twice that of the entity;
4. The upper shadow line should disappear. If it exists, it should be shorter than the solid line.
Why does the hammer line often indicate the bottom of the market? In fact, the principle is easy to understand. In a round of continuous decline, the market still dominated because of bearish sentiment, so the price continued to fall at the opening, but in the following time, the bulls thought that the price had reached a suitable stage (more often, the main force chose to enter the market, which would be a strong reversal signal if combined with heavy volume), which led to the rapid rebound of the price, approaching or even exceeding the opening price, thus forming the hammer line pattern we saw.
Let's look at a common K-line tactic in actual combat.
Rickshaw puller
As usual, the above picture first:
Let's look at the 4-hour chart of BTC near 65438+ February 24 last year.
In a wave of continuous decline, there were several rebounds, but the strength was not strong. In the red circle, the situation reversed and the first strong rebound market appeared in a short time.
K-line in the figure is characterized by small entity and long upper and lower shadow lines. We call this kind of K-line with small intermediate entity but long upper and lower shadow lines as rickshaw line. Pay attention to the following points when observing the rickshaw line:
1. The entity is small or even nonexistent;
2. All-day amplitude is at least 3%, generally speaking, 7%-8% will be ideal;
3. The color of rickshaw puller line is not important.
The rickshaw line indicates the end of a market, which is not necessarily a reversal signal, but also a back-and-forth fluctuation of the price (we call this back-and-forth fluctuation of the price in an interval a shock). Theoretically, in a downward trend, the long upper and lower shadow lines indicate that the market price fluctuates greatly, but the entity is close to the center, indicating that the market is indecisive, and the bullish and bearish emotions cannot completely dominate the market, so it is very likely to terminate the previous trend at this time and form a shock or reverse rise. Similarly, the emergence of rickshaw pullers in a wave of rising prices also indicates the end of the rising market with great probability.