For want of foreign exchange earnings for investors to understand the basics of foreign exchange it is essential. In addition, investors have to learn to use the necessary aids, such as foreign exchange K line graph. Xiao Bian today ATFX focused explain how to read forex K line graph?
K is also known as candle chart, graph or candle. K line graph source of foreign exchange movements originated in the eighteenth century rice market in Japan, when Japanese rice business to represent changes in the price of rice, the main source because of its relatively simple application, which is widely quoted in the financial markets, for example, , futures, stocks, forex, and so on.
Forex trading charts, a K-line is recorded in one day price movements, and the day of the K-line arrangement according to the time sequence together, they make up the history of changes in the exchange rate situation, called K-line diagram. A K line comprising four information: opening price, closing price, the highest price the day and the day price. With this information we can draw a line K in FIG several components: the shadow line, and intermediate entities under the shadow portion.
FX K line in FIG be largely classified into Yin and Yang line,
· Close above when open, generally depicted as red solid portion or blank, referred to as "candle"
· When the closing price below the opening, the solid portion is generally depicted as green or black, called "Yin"
Under normal circumstances, candle represents the rally, Yin represents the down market, while in the foreign exchange K line graph among the more common phenomenon is huge candle and a big line.
As shown, huge candle is a candle longer K-line, huge candle represents the current market is in a rising trend, illustrates that the opening price and closing near its low price close to the highest price, while the big line is the exact opposite, it represents the current market is in serious decline in the market.
According to the time difference, foreign currency may be divided into K line in FIG weekly chart, FIG immediate, daily chart and so on FIG minutes hours also FIG.
When performing the analysis of the K-line diagram, the best is to see the K-line diagram and the overall panorama, foreign exchange market of the overall market for analysis, not just simply a separate K-line K or a certain period of time Look line, and look a year or two years or even longer in the K line graph, only through a comprehensive analysis, only the law of the foreign exchange market fluctuations in the exchange rate can be clarified.
As a K-line figure is huge candle candle instance, it means that the market outlook will have the opportunity to rise, Yin instance represents a bearish outlook express will fall much space.
However, technical analysis has sided nature, foreign exchange K line has the advantage of analyzing changes in the foreign exchange market can be comprehensive, informative, foreign exchange transactions in the foreign exchange market to more accurate prediction. We can fully thoroughly observed real changes in the market. We from the K line graph, can see the trend of the share price (or market), and also can learn fluctuated daily forex prices.
These are the ATFX explain about the K-line, hoping to help investors learn by watching K-line trend, to determine the market trend.
