What does the color of the K-line on the currency circle exchange represent?

In currency exchanges, the K-line chart is a common chart used to represent the price trend of cryptocurrency. The color of candles on a K-line chart has important meanings and provides investors with visual clues to price trends. This article will delve into the meaning of K-line colors to help investors gain a deeper understanding of the cryptocurrency market.

The meaning of the K-line color in the currency circle exchange

In the currency circle exchange, the K-line chart is A type of chart used to represent price movements. The K line consists of a vertical line segment and two horizontal lines. The vertical line segment represents the fluctuation range between the opening price and the closing price, and the horizontal lines represent the highest price and the lowest price respectively.

Different price trends can be distinguished based on the color of the K line:

Green (or blue) K line: indicates that the closing price is higher than the opening price, That is, prices rise.

Red (or black) K-line: indicates that the closing price is lower than the opening price, that is, the price has fallen.

Doji K-line: indicates that the opening price and closing price are the same, that is, there is no obvious price fluctuation.

Hammer K line: A K line with a long lower shadow, a short upper shadow, or no upper shadow, indicating that the price fell sharply after the opening, but then Some of the lost ground was recovered.

Hanging K-line: A K-line with a long upper shadow, short lower shadow or no lower shadow, indicating that the price rose sharply after the opening, but It then fell back to near the opening price.

These different K-line colors reflect the rise and fall of prices within a specific period of time, which can help investors analyze price trends and predict future trends. For example, a series of green K lines indicates rising price momentum, while a series of red K lines indicates falling price momentum.

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