How to use K-line form to make orders in spot gold investment

In spot gold investment, we often have to judge the trend of gold based on the K line, and various forms will also appear in the K line chart, so how to use the K line form to make orders in spot gold investment?

The gold trading market has its own unique trading mechanism. The daily trading volume is large, and the funds are free to enter and exit. Therefore, the market changes are always dizzying, and it is easy to be confused.

However, in order to make profits, investment must inevitably predict the future development of investment products. In order to predict the market, investors will refer to the trend of the K chart. So how do investors speculate on gold according to the K-line pattern? Let's study together.

1. What is K line

First, let's take a look at the concept of K line. The K line was invented by the Japanese in the 18th century and used to represent the opening price, closing price, highest price and lowest price in a period of time.

A K-line can be divided into three parts, entity, upper shadow and lower shadow. When the entity is hollow, the closing price is higher than the opening price, the top of the entity is the closing price, and the bottom is the opening price, which is called the Yang line.

When the entity is solid, the closing price is lower than the opening price, the position of the top of the entity is the opening price, and the bottom is the closing price, which is called the negative line.

Open http://t2.mademoney.net, then click whatsapp account +917406391776 to add teachers. A simple greeting may open the door to wealth.

The upper shadow line is a line that develops upwards in the middle of the entity, and its top position represents the highest price in this period; the lower shadow line is a line that is downward, and its end represents the lowest price.

2. How to make orders based on the K-line pattern

Let's take a look at the basic form of K line, including Dayang line, Dayin line, cross star and so on.

1) When the entity of the K line is very long, and the upper and lower shadow lines are short or even absent, we call it the Dayang line or Dayin line.

This means that the highest price and the lowest price are the same as the closing price and opening price, or only a small difference. The appearance of the Dayang line in the bottom area indicates that the bulls are vigorously buying in the market, and the appearance of the Dayin line at the top indicates that the bears have the upper hand or the main bulls are shipping.

At this time, the bulls or bears are very powerful and suitable for homeopathic operation. If the Dayang line appears in the falling market, or the Dayin line appears in the rising market, the market may reverse, and you need to be cautious about changes in the market outlook.

2) When the entity is very short or there is no entity, and the upper and lower shadows are more obvious, this K line is called a cross star. At this time, the opening price and the closing price are almost the same.

If the upper shadow is longer than the lower shadow, the bulls dominate, otherwise the bears dominate. When Doji appears in some special positions, you need to pay attention to the possible reversal of the market.

  to sum up

The changes in the K-line pattern are very rich and diverse. If investors want to know how to make a spot gold investment based on the k-line pattern, they need to refer to the fundamentals and use some technical indicators for analysis.