K-line chart is a commonly used technical analysis tool in stock, futures and other trading fields. Through the K-line chart, we can show the fluctuation of the market from the two dimensions of price and time, thus helping traders to make decisions. However, how to correctly understand the K-line chart also requires some skills. This paper analyzes how to really master the trick of reading K-line chart from many angles.

1. Understand the basic concepts

To learn to read the K-line chart, we must first understand some basic concepts. K-line is a graph composed of "entity" and "shadow line". Entities represent price fluctuations, and hatched lines represent the highest and lowest prices of the day. At the same time, we should also know some commonly used K-line graphics, such as Changyang, Yin Chang and Cross Star. Only by understanding these basic concepts can we better analyze the K-line chart.

Pay attention to the trend

Trend is one of the most basic concepts in K-line chart. Only by embracing the trend can we get better trading opportunities. Pay attention to the rising and falling trend of the price when looking at the K-line. Especially in the short term, it is easily affected by market noise, and it is necessary to capture the main trends through the K-line chart.

Analysis table

The form of K-line chart is one of the important indicators to measure the trend. When you look at the K-line chart, you can analyze the graphics formed by the K-line, such as head and shoulder top, bottom inversion and so on. Each form has its own trading strategy, and it is necessary to formulate corresponding trading strategies according to different forms in order to obtain better returns.

4. Comprehensive indicators

When analyzing the K-line, we should not only look at the K-line chart itself, but also combine some technical indicators to analyze the market. Such as MACD, RSI, KDJ and so on. These indicators can help traders better capture market fluctuations, and can also provide traders with trading suggestions.

Determine the buying and selling point

The ultimate goal is to determine the trading point, hoping to make a profit in the transaction. When you look at the K-line chart, you should understand the price range corresponding to the trading point, and at the same time, you should also understand your trading psychology and set trading strategies such as stop loss and take profit.

To sum up, K-line chart needs multi-angle analysis, including understanding basic concepts, paying attention to trends, analyzing patterns, combining indicators and determining trading points. Only by mastering these skills can we get better profits in the transaction.