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What does it mean when there are three lines on the Bitcoin mark

Date:2024-05-22 19:32:31 Channel:Wallet Read:

In today's digital currency market, Bitcoin has always been a hot topic that attracts much attention. For investors who study Bitcoin price trends, the three lines in the Bitcoin market chart

The four most famous international exchanges:

Binance INTL
OKX INTL
Gate.io INTL
Huobi INTL
Binance International Line OKX International Line Gate.io International Line Huobi International Line
China Line APP DL China Line APP DL
China Line APP DL
China Line APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.


When it comes to Bitcoin market charts, I have to tell you about the importance of Bitcoin market charts. It is no exaggeration to say that as long as Bitcoin investors can make money, most Bitcoin investors have some understanding of Bitcoin market charts. , after all, only by understanding the Bitcoin market chart can investors know when to enter and when to exit, and only by seizing the investment opportunity can investors make money in the currency circle instead of losing everything. As we all know, Bitcoin There are three lines on the market chart, but most people don’t know what the three lines on the Bitcoin market chart mean.

 What do the three lines on the Bitcoin market chart mean?

The three main colors in the daily K-line chart are one line, double yellow line, and green line respectively representing: 5, 10, and 60 day moving average systems. However, these are not fixed and will vary according to the settings. Different, for example, they can also be set to 5, 15, and 60 moving averages in the system software.

1. Look at the yang and yin of the K line and the total number. The yang and yin represent the comparison between the long and short sides. The more negative lines there are, it means that the power of the short side of the market is stronger, and the probability of the stock price falling is greater; the more positive lines there are, it means that the dominance of various parties in the market is stronger, and the driving force for the stock price to rise is stronger.

2. Look at the size of the real line and shadow line. The size of the real line represents the essential driving force of the market development trend. The larger the real line, the more obvious the upward or downward trend. The shadow line represents a possible turning point signal. The longer the impact in one direction, the greater the probability that the stock price will turn in the opposite direction.

3. Looking at the K-line chart in conjunction with the trading volume, the trading volume represents the size and intensity of the gaming power of the long and short parties, while the K-line chart is the result of the struggle.

K-line chart shapes can be divided into flip shapes, combing shapes and trend lines, etc. The post-K line chart has been introduced into the stock market and commodity futures because of its meticulous and unique marking method. How to draw the K-line chart in the stock market and futures includes four data, namely the opening price, the highest transaction price, the lowest price, and the closing price. All K-lines are centered around these four data, reflecting Trend 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. You can also draw weekly K-line charts and monthly K-line charts.

 How to read the Bitcoin market chart

1.Yin line and Yang line

The K-line chart contains a lot of Eastern philosophical wisdom, so it pays attention to "Yin and Yang": the Yin line is generally represented by green, indicating that the closing price during the cycle is lower than the opening price, implying that the market will continue to fall; the Yang line is generally represented by red, indicating that The closing price during the cycle is higher than the opening price, indicating that the market will continue to rise.

The Yin and Yang K-lines represent the direction of the market trend. For beginners, as long as they count which K-line has more numbers in a market, they can probably know whether the market is in an upward or downward trend. Of course, advanced investors should also learn to judge the overall trend of the market from the upward and downward movement of the K-line center of gravity.

2.Measure the length of the shadow line

In the K-line theory, the shadow line is a signal of a market turning point - the longer the shadow line in one direction, the less conducive it is to the gold price moving in that direction, that is: the longer the upper shadow line, the less conducive it is to the rise, and the longer the lower shadow line, the less conducive it is to the gold price moving in that direction. The longer it is, the more unfavorable it is for the decline. Take the upper shadow line as an example. Regardless of whether the K line is yin or yang, it indicates that after a round of long-short game, the bulls are finally defeated. The upper shadow line has become the upper resistance in the next stage, and the market will adjust downwards. The probability is high.

3. Pay attention to the size of the entity

The size of the K-line entity represents its internal power. The larger the entity, the more obvious the upward or downward trend will be. Taking the Yang line as an example, the real body is the part that closes higher than the opening price. The larger the real body of the Yang line is, the more fully the current rise has been recognized by the market. Many formations have joined in. After sufficient kinetic energy has been accumulated, the inertia of the upward trend increases. Determine the physical size of the Yang line. In the same way, the larger the negative entity appearing in the trend chart, the more powerful the subsequent decline will be. Investors cannot take it lightly and underestimate its lethality.

For investors, it is very important to read the Bitcoin market chart, because it is the main tool for analyzing the market. As we all know, the currency circle has unilateral market and volatile market. Generally, unilateral market only lasts for a period of time. When there is a unilateral rise or fall in the market, it is best to do this kind of market. Investors only need to be long on dips or short on highs. In a directionless market, it is not suitable for medium and long-term operations. Be short-term, sell high and buy low, and run when you make a profit.

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