In today's digital currency trading market, learning to understand and analyze K-line charts is a necessary skill for every investor. K-line charts are an important tool to reflect the price fluctuations of digital currencies. Through the study of K-line charts, investors can better grasp the market trend and formulate effective trading strategies. Next, let's delve into the basic knowledge of currency circle K-line charts and reveal the key points of learning to read currency circle trading K-line charts.

 The origin and basic composition of K-line charts

The K-line chart originated in Japan and is a chart that directly reflects price trends. It consists of a body part and a shadow line. Each K-line represents the opening price, closing price, highest price and lowest price over a period of time. By observing the color and shape of the K-line, you can intuitively understand the market supply and demand relationship and the comparison of buying and selling power.

In the K-line chart, the positive line indicates that the closing price is higher than the opening price during the period, usually white or green; the negative line indicates that the closing price is lower than the opening price, usually red or black. The shadow line extends to the highest and lowest prices, reflecting the price fluctuation range.

 How to interpret the K-line chart

Learning to understand the K-line chart requires mastering some basic skills. First, we should pay attention to the form of K-line, such as single K-line, cross star, engulfing pattern, etc. Different forms imply different market signals. Secondly, we should combine the volume for analysis. The increase in volume usually strengthens the reliability of price trends. In addition, we should pay attention to the support and pressure levels of the K-line chart, which are important reference points for price reversals. For example, when there are multiple positive lines on the K-line chart and begingroup breaks through the previous resistance level, it often indicates that the price will continue to rise. On the contrary, continuous negative lines fall, which may mean weak market sentiment, and investors should operate with caution.  Practical skills and precautions In actual trading, in addition to mastering the basic knowledge of K-line charts, we also need to pay attention to some practical skills. First, we should flexibly use various technical indicators combined with K-line charts for analysis, such as moving averages, MACD, etc., to improve the accuracy of transactions. Secondly, we should set the stop-profit and stop-loss points, reasonably control risks, and avoid blindly following the trend and causing capital losses. In addition, timely attention to market dynamics and news, and a keen perception of changes in market sentiment are also the key to successful trading. In the rapidly changing digital currency market, only by constantly learning and adjusting strategies can you stand out in trading.

 Conclusion

Learning to read the K-line chart of currency circle trading is not something that can be achieved overnight. It requires long-term learning and practice. Only by constantly observing and summarizing experience can you improve your analysis ability and judgment level. I hope this article can help readers better understand the basic knowledge of the currency circle K-line chart and provide a certain reference for future trading decisions. Remember, master the skills and win in the trading trend!

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
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.

How to learn to read the K-line chart of currency circle transactions? Before answering this question, let's first understand the K-line chart of currency circle transactions. The K-line chart is also called the candle chart or the candle curve chart because of its shape like a candle. The pronunciation of the English candle (Candle) and the curve (Curve) are both pronounced as K, so it is referred to as the K-line chart. After understanding the K-line chart of currency circle transactions, let's return to the topic. How to learn to read the K-line chart of currency circle transactions? The following editor of the currency circle will explain the basic knowledge of the K-line chart of the currency circle to you for reference and learning by investors.

 How to learn to read the K-line chart of currency circle transactions?

1. Look at the yin and yang. Yin and yang represent the trend direction. Most exchanges and analysis software in the currency circle are green for Yang line and red for Yin line. Yang line means that it will continue to rise, and Yin line means that it will continue to fall. Taking the Yang line as an example, after a period of long and short struggles, the closing price is higher than the opening price, indicating that the bulls have the upper hand. The Yang line indicates that the next stage will continue to rise, at least it can guarantee the inertia of the initial stage of the next stage. On the contrary, the power of the Yin line is the same.

2. Look at the size of the body. The size of the body represents the internal power. The larger the body, the more obvious the power of rising or falling. On the contrary, the power is not obvious. Taking the Yang line as an example, its body is the part where the closing price is higher than the opening price. The larger the Yang line body is, the stronger the power of rising is. The larger the Yang line body is, the greater the internal power of rising is. The power of rising will be greater than that of the Yang line with a small body. On the contrary, the power of the Yin line falling is the same.

Look at the length of the shadow line. The shadow line represents the turning signal. The longer the shadow line in one direction, the less favorable it is for the stock price to change in this direction. That is, the longer the upper shadow line is, the less favorable it is for the stock price to rise. The longer the lower shadow line is, the less favorable it is for the currency price to fall. Taking the upper shadow line as an example, after a period of long-short struggle, the bulls are defeated. Regardless of whether the K line is Yin or Yang, the upper shadow line has constituted the upper resistance of the next stage, and the probability of price adjustment downward is high.

 Basic knowledge of K-line chart in the currency circle:

1. Yang line and Yin line

The main components of the K-line chart are two: Yang line and Yin line. Most exchanges and analysis software in the currency circle use green to represent Yang line and red to represent Yin line. Generally speaking, Yang line represents long side (buy) and Yin line represents short side (sell)
Which side has stronger power will have the corresponding K line in the K-line chart. Take the daily chart as an example: today's buying power is greater than the selling power, then today's K-line in the daily chart is Yang line (green column). On the contrary, if a Yin line (red column) appears, it means that the selling power is stronger

In addition, sometimes there will be upper shadow line, lower shadow line, cross star and other forms, which is a further way to judge the power of long and short. Let's not talk about this for now

The red and green columns at the bottom (black box) in the above picture represent the trading volume of the time period. If it is a daily chart, then one column represents the trading volume of the day, and the hourly chart is the trading volume of one hour. The higher the trading volume, the higher the column.

The green column represents stronger buying, and the red column represents stronger selling, which corresponds to the Yin and Yang lines above.

2. Moving average chart

In addition to Yin and Yang lines, there are multiple lines of different colors in the K-line chart: white, yellow, purple, etc. These lines of different colors are moving averages. Each color line represents a different moving average: 5-day moving average, 10-day moving average, 90-day moving average... It is possible because the moving average can be set freely.

Take aicoin as an example. After opening the K-line chart, click [Settings]-[Indicator Parameter Settings] at the top and fill in the corresponding number in the MA column. If you set the 5-day line, fill in the number 5.

What is the moving average?

The moving average (MA) refers to the arithmetic moving average within a certain trading time. Connecting these points calculated every day into a line constitutes a moving average. For example: 5-day moving average: It is the weighted average price of the closing price of 5 trading days and then connected into a line.

3. Time chart

At the bottom of the K-line chart, we can see many time options, such as: 1 minute, 1 hour, 1 day, 3 days, weekly, etc., which represent the trend of different time periods. If you click 1 day, you will see the daily line, that is, the trend of each day. 1 minute is the trend of each minute of the day

Generally speaking, the daily line, 1 hour line and 4 hour line are the most used, of course, the 1 minute line, weekly line, monthly line, etc. are occasionally used

4. Other information

There is some information above the K-line chart, as shown in the figure below. Open: XXXX, is the opening price, close: XXX, represents the closing price, MA5, MA10 is the 5-day or 10-day line price of the time period

How to learn to read the K-line chart of currency circle transactions? Through the above introduction, I believe that everyone has some understanding of how to learn to read the K-line chart of currency circle transactions. In the digital currency market, technical analysis is a very important indicator for predicting short-term market trends, that is, the K-line chart that everyone often talks about. Whether you believe in or advocate technical analysis, it is necessary to understand the K-line chart. Apart from technical issues such as technical graphics, indicators, and long-short games, the price trend, trading volume, lowest point, and highest point of a currency can also be reflected in the K-line chart. If you want to know more about this, you can pay attention to the Coin Circle. The editor of the Coin Circle will continue to update related reports later!