In the stock or futures market, people use the K-chart for technical analysis and forecast the price trend. However, how to identify short message numbers and long signals is an important and complicated problem. This paper will discuss how to identify short message and long signal in K-line diagram from many angles.

First observe the K-line trend line. In the upward trend, the highest price will generally rise, and the lowest price will also rise. This trend is called bull market. On the contrary, in the downward trend, both the highest price and the lowest price will fall. This trend is called short market. Therefore, by looking at the trend line of the K-line chart, we can roughly judge the market trend and help identify the long and short signals.

Second, judge the market trend by observing the color of K-line. In many K-line charts, short lines are usually represented in red, and long lines are usually represented in green or white. If you see that the length of the red K-line exceeds the length of the green K-line, it means that the long-short signal is more likely to be a short signal. On the contrary, if you see that the length of the green line exceeds the length of the red line, it means that the long-short signal is more likely to be a multi-head signal.

Third, use indicators to assist judgment. RSI indicators are usually used to show whether stocks are overbought or oversold. If the RSI index reaches above 70, the stock is likely to be overbought, and the short signal is more obvious at this time. Conversely, if the RSI index reaches below 30, the stock is likely to oversold, and the bullish signal is more obvious at this time. Other indicators, such as MACD and EMA crossing, can also help to judge long and short signals.

Fourthly, analyze the trading volume of K-line chart. The trading volume reflects the situation of market participants. If the price is rising and the trading volume is getting higher and higher, it is likely to be a bull market, because more investors are involved and buying stocks. On the other hand, if the price falls and the turnover is getting higher and higher, it means that the market is more panic, and it is likely to be a short market.

To sum up, by observing the trend, color, index and volume of the K-line, we can accurately judge the market trend and identify the long and short signals. In investment decision-making, it is very important to identify long and short signals and help investors make correct trading strategies.