Why classify K-lines? K-lines are also what we call price pillars. Classification is for better management and boundaries, and to help us understand the market. Because the K-line itself protects more information in the field, each K-line includes the status of other small-level pairs, as small as each TICK data, which is also a composition of other large-level trends. The artificial definition is to accelerate the rapid positioning of the market.
1: Trend K
Understanding the trend K means that when you see this kind of K line, you think that this K line is a trend at a certain low level. If it is falling, it is a downward trend K, and if it is rising, it is an upward trend K; Trend K is also divided into trend K within the trend and trend K outside the trend. The trend K within the trend can better reflect the direction of the trend;
So here is a definition of trend K. The entity part of this K line must be greater than the fluctuation level of the average K line. All entities are larger, the shadow line is relatively small, and the body part is much larger than the shadow line part;
2: Consolidate K
Understand consolidation K, consolidation K shows that there are differences between the long and short sides of the market during this time period, which is equivalent to a dynamic equilibrium state, which is a convergent state at a certain low level; this K line is also divided into consolidation K within the trend and consolidation outside the trend K; if it is within the trend, most of the consolidation K may run in the direction of the previous trend K, if it is outside the trend, most of the consolidation K is a suspicious stagnation area, representing the attenuation of strength; so before analyzing the current price behavior, you must be clear about the current K What is the state of the line;
Definition Consolidation K: The real part is relatively small, and there are many shadow lines. The strength of both long and short sides is balanced in this time span, usually manifested as a cross star, a small Yin line or a small Yang line;
3: Retrace K
Understand the retracement K, the retracement K is thought to be a signal K line, this K line usually has a profit-taking and profit selling after the market develops, if this kind of K line is a retracement within the trend, it is a good way to enter the market The signal K, if not, it may be the K of long-short conversion
Definition of retracement K: The lowest point of the price breaks through the lowest point of the previous K line, and the direction can be opposite to or the same as the trend K. It can be used as a signal K to guide entry
4: Reverse K
Understanding of Reversal K: Reversal K, as the name implies, is opposite to the direction of the trend. It can have a long shadow or entity, indicating a strong reverse movement. If you are in the trend, you should pay attention to profit protection at this time. If you are not in the trend, it is very May be long-short conversion line
Definition of reversal K: If it is an upward trend, its high point is the highest point of this trend, but the closing price is below half of the price column, which can be a positive or negative line with a long shadow line, or a long solid negative line. If it is a downward trend, its low point is the lowest point of this trend, but the closing price is more than half of the price column, which can be a positive or negative line with a long shadow line, or a long physical positive line.
Summary: A good start is half the battle. Start with the microcosm, start with learning words, and build your own analysis tools step by step. Although it is far away, a journey of a thousand miles begins with a single step.
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