Gold speculation generally refers to short-term long-short operations on leveraged gold electronic contracts (such as London gold and gold futures) to earn fluctuations in price differences. Regardless of whether investors are engaged in internal or external trading, K-line charts are basic and necessary knowledge.
1. What is a candlestick chart?
The K-line chart originated from the Tokugawa shogunate era in Japan. At that time, rice merchants in Osaka used it to record the rise and fall of rice prices on a daily, weekly and monthly basis. Later, because this method of recording the market is delicate and unique, and has the advantages of strong three-dimensional effect and large amount of information, it is widely used in the fields of stock, futures and precious metal investment.
2. The components of the K line
The K-line chart is mainly composed of three parts, including: the upper shadow line, the entity, and the lower shadow line. Among them, they represent respectively:
(1) Upper shadow line: refers to a thin line extending upward from the top of the entity, and the end of the thin line is the highest price of the day;
(2) Entity: refers to the range of price fluctuations on the day;
(3) Lower shadow line: It refers to a thin line extending downward from the bottom of the entity, and the end of the thin line is the lowest price of the day.
3. The four major components of the K-line
The upper and lower shadow lines show the four major elements of the market of the day, namely the highest price, the lowest price, the opening price and the closing price. In addition, according to the difference between the positive line and the negative line, the positional relationship between the closing price and the opening price is as shown in the figure below.
(1) Opening price: Also known as the opening price, it refers to the first transaction price of spot gold after the market opens on each trading day;
(2) Closing price: also known as closing price, refers to the last transaction price of spot gold before the market closes on each trading day;
(3) Highest price: refers to the highest price generated during the trading process of spot gold from market opening to market closing on each trading day;
(4) Minimum price: refers to the minimum price generated during the trading process of spot gold from market opening to market closing on each trading day.
I believe that as long as we carefully understand the above content, investors will be able to have a more thorough understanding of the origin and function of the K-line, as well as the composition principle of a single K-line. But in the future, the pace of learning of investors cannot stop here. It is also necessary to have a deep understanding of the special pattern composed of multiple K-lines in order to more effectively predict the future market trend from it.