The foreign exchange K-line chart is the best tool in technical analysis. Different people will have different “views” when looking at the foreign exchange K-line. Therefore, the same foreign exchange K-line chart will be “analyzed” when it is placed in front of many investors. There are many different results, so there are two different trading results, profit and loss.

How to look at the market and K-line chart for foreign exchange novices

Forex K-line chart, because it looks like a candle, it is also called candle chart. The drawing of each foreign exchange K-line chart (candle chart) is drawn from four price levels: opening price, highest price, lowest price, and closing price. All foreign exchange K-line charts are developed around these four data, reflecting the trend and price information of the foreign exchange market. The composition of the Yin and Yang lines represents the strength of the long and short forces in a certain period of time.

How to look at the market and K-line chart for foreign exchange novices

  1. Look at Yin and Yang first

Yin and Yang represent the trend direction of long and short, Yang Xian indicates that the market is rising and may continue to rise, and Yin Xian indicates that the market is falling and may continue to fall. Taking the Yangxian as an example, after a period of long-short struggle, the closing higher than the opening indicates that the bulls have the upper hand, so the Yangxian indicates that the price will continue to rise in the next stage.

Second, look at the entity again

The entity refers to the price difference between the closing price and the opening price of the candlestick. The larger the spread, the stronger the candlestick. Therefore, in foreign exchange transactions, choose the large K-line of the physical part, such as the big Yinxian, the big Yangxian, and the probability of successful trading is higher.

Third, look at the shadow at the end

The shadow line refers to the price difference between the highest low or the lowest price and the closing price of the K line. For example, the upper shadow line refers to the price difference between the highest price and the closing price. The farther the distance between the highest point and the closing price, It means that the longer the upper shadow line, the more negative the upside force. At this time, it is more favorable to buy or sell short. The lower shadow line refers to the price difference between the lowest price of the K line and the closing price. The longer the lower shadow line, the stronger the downward force and the strong upward counterattack. Therefore, in foreign exchange trading, if you see that the upper shadow of the candlestick is too long, you cannot make a long order, and if you see that the lower shadow of the candlestick is too long, you cannot make a short order.

How does the foreign exchange candlestick chart look up and down?

K-line chart patterns can be divided into reversal patterns, finishing patterns and gaps and trend lines. The post-K-line chart was introduced to the stock market and futures market because of its delicate and unique marking method. The drawing method of the K-line chart in the stock market and futures market contains four data, namely the opening price, the highest price, the lowest price, and the closing price. All the bars are developed around these four data, reflecting the general situation and price information. . If you put the daily K-line chart on a piece of paper, you can get the daily K-line chart, as well as the weekly K-line chart and monthly K-line chart.

How is the foreign exchange bar chart bullish?

  1. When the closing price is higher than the opening price, the opening price is lower and the closing price is upper. The rectangular column between the two is drawn in red or hollow, which is called a Yang line; the highest point of the upper shadow line is the highest price, and the lower shadow The lowest point of the line is the lowest price.

When the closing price is lower than the opening price, the opening price is above and the closing price is below. The rectangular column between the two is drawn in black or solid, which is called a Yin line. The highest point of the upper shadow line is the highest price, and the lower shadow The lowest point of the line is the lowest price.

  1. According to the calculation cycle of the K line, it can be divided into daily K line, weekly K line, monthly K line and annual K line.

Weekly K-line refers to a K-line chart drawn based on the opening price on Monday, the closing price on Friday, the highest price of the week and the lowest price of the week. The monthly K-line is based on the opening price of the first trading day of the month, the closing price of the last trading day, the highest price of the month and the lowest price of the month to draw a K-line chart. Similarly, the annual K-line definition can be derived . Weekly K-line and monthly K-line are often used to study and judge the mid-term market. For short-term operators, the 5-minute K-line, 15-minute K-line, 30-minute K-line and 60-minute K-line provided by many analysis software also have important reference value.

  1. According to the fluctuation range of the opening price and the closing price, the K-line can be divided into extremely yin, extremely yang, small yin, small yang, middle yin and middle yang, and big yin and big yang.

The advantages of the foreign exchange K-line chart to judge the rise and fall are very clear, simple and rude, but there are also certain risks. No method or technique is 100% correct. Investors must have a clear understanding. Make a stop loss. There is also the need to pay attention to the trend of the international market. If the market changes significantly, it is necessary to make timely response strategies.