How do beginners look at the foreign exchange K-line chart, and how does the K-line chart see ups and downs?

There are many data indicators in foreign exchange investment transactions, such as the candlestick chart is one of them, usually experienced investors will look at these data. Of course, this is difficult for beginners. This article focuses on how to look at the K-line chart for beginners, and how the K-line chart is bullish.

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The most basic and commonly used is the K line

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As shown in the figure below, a bar indicates a time period, if you select 30 minutes, a bar indicates a 30-minute transaction. If you select a day, a bar indicates the day's trades.

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The Yin column indicates a fall, that is, the closing price is lower than the opening price, and the Yang column indicates an increase, that is, the closing price is higher than the opening price.

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The next two sides are the opening and closing prices of the time period, and the vertical line shadows on the upper and lower parts of the real body represent the highest and lowest prices in the time period, respectively.

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Through the morphological analysis of the foreign exchange K-line chart, it is mainly possible to analyze when the foreign exchange market will reverse, and to determine the earliest time to turn down in a rising market, so that you can short the first time to earn greater profits; also In a wave of falling market, you can judge when the earliest time will stabilize and rebound, then you can do more and take the lead in the first time.

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Another part of the foreign exchange K-line is to study the conditions under which the market will continue. If you master these patterns, you can better trade with the trend, and you will be more confident when you hold a favorable order, and even increase your position on the way to make the profit more profitable. big.

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How to read the K-line chart for beginners

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1. Look at the upper and lower shadows. The hatched line in the Forex chart shows the turning signal of the market trend. If the shadow line is longer in one direction, the more unfavorable the price moves in that direction. That is to say, the longer the shadow line, the more unfavorable the price rises, and the longer the shadow line, the more unfavorable the price decline. Take the hatched line for example. After a long period of competition for short positions, short sellers will lose a lot, so the price rebound is more likely. Likewise, overhead lines mean that price cuts are more likely, which requires investors to choose long and short trades based on actual conditions.

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2. Look at the trend of yin and yang lines. Yin and Yang represent the trend of emptiness. A positive line indicates an uptrend that may continue to rise. A negative line indicates a downtrend that is likely to continue. Generally speaking, if there are more negative k-lines or positive k-lines in a row, it means that the price adjustment or rebound will increase in the later period. At this point investors can invest some money to go short or do more ahead of time. After judgment and confirmation in terms of technical analysis, more or less content can be added.

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3. Look at the physical size of the yin and yang lines. The size of the yin and yang lines represents the inner power. The larger the body, the more obvious the upward or downward trend, on the other hand the trend is relatively vague. Taking the positive line as an example, if the body of the positive line is larger, the internal upward force will be greater, and the bulls will be more motivated. Also, if the negative line entity is larger, the drop power will be more sufficient.

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How does the K-line chart look up or down?

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1. Look at the color of the K line. The positive line (red) represents the rise, and the negative line (green) represents the decline. In the absence of news, the price moves in the original direction. Therefore, the Yang Xian represents that there will be inertia to continue to rise in the next time period, while the Yang Xian is the opposite. Of course, investors also need to analyze all kinds of information. Good information will rise, and bad information will go up.

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2. Look at the length of the shadow line. The shadow line is usually a signal of fluctuation and turning. In the K line, the longer the shadow line is drawn in one direction, the greater the negative force, and the greater the probability that the stock price will fluctuate in the opposite direction. At this point investors should analyze whether the stock is undergoing a correction or a top turn. Adjust the investor's strategy according to different situations.

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3. Look at the size of the column. The length of the column represents the power. If the positive column is large, it means that the upward momentum is strong, and the negative column is large, and vice versa. However, investors should first analyze how much the stock's upward or downward momentum is, and whether the volatility will be too large, and whether it will quickly consume the momentum and cause volatility to reverse.

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Regarding the issue of the K-line chart, this article introduces how beginners look at the K-line chart, and how the K-line chart is bullish. In theory, it is not difficult to look at the K-line chart, but if you want to find the timing of trading by analyzing the K-line chart, it is quite difficult for beginners. Of course, with the increase of investors' knowledge and experience, it is still easy to see the K-line chart in the future.