In the K-line chart of the straight flush, the lines with five colors represent different time periods, which helps investors to understand the market dynamics. Specifically, the white line represents the 5-day moving average, which reflects the short-term market trend. The yellow line is the 1-day moving average, which is one of the focuses for short-term investors. The purple line corresponds to the 2-day moving average, which is often used as a reference by mid-line traders. The green line represents the 3-day moving average, and the observation of the trend is more stable, which is suitable for medium and long-term investors. The blue line is the 6-day moving average, which is usually used to judge the medium and long-term market trend.
The K-line chart not only shows the four key data of the opening price, the highest price, the lowest price and the closing price, but also shows the price fluctuation and market trend in a graphic way. Whether it is inversion form, arrangement form, or technical analysis tools such as gap and trend line, they are all interpreted based on K-line diagram.
K-lines with different periods, such as weekly K-line, monthly K-line and annual K-line, correspond to different time spans and can be used to analyze different levels of market. For example, weekly K-line and monthly K-line are suitable for mid-term analysis, while 5-minute, 15-minute, 3-minute and 6-minute K-lines have important reference value for short-term traders.
By understanding these lines and the meaning behind them, investors can have a better insight into the changes in the market and make more informed trading decisions. Mastering the basic knowledge of K-line chart is one of the necessary skills for every investor.
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