Candle chart method is an important tool in technical analysis, which is used to analyze the price trend of financial markets such as stock, foreign exchange and futures markets. Candle chart method was invented by the Japanese, which was first used to analyze the Japanese stock market, and then widely used in the global financial market.

The candle chart method shows the price trend of the market by drawing a candle chart. Each candle chart contains four price points: opening price, closing price, highest price and lowest price. The shape of candle chart can tell us important information such as market trend, support level and resistance level.

How to operate with candle diagram method?

Using the candle diagram method requires mastering the following steps:

Step 1: Observe the market trend.

First, we need to observe the trend of the market. If the market is on the rise, we should look for buying opportunities; If the market is in a downward trend, we should look for selling opportunities.

Step 2: Find the support level and resistance level.

Next, we need to find support and resistance. Support level refers to the position where the price begins to rebound after it falls to a certain extent. Resistance refers to the position where the price rises to a certain extent, the market appears hard, and the price begins to fall back.

Step 3: Determine the entry point and stop loss point.

After finding the support level and resistance level, we need to determine the entry point and stop loss point. The entry point refers to the price we buy or sell; Stop loss point refers to the price point where we stop loss when the price trend is unfavorable.

Step 4: Operation.

Finally, we need to do something. If you think that the market will rise, you can buy near the support level, and the stop loss point is set below the support level; If we think the market will fall, we can sell near the resistance level and set the stop-loss point above the resistance level.