Kline chart is a fundamental skill for trading. It represents the price change over a certain period. Moreover, it is also the main financial tool to learn about the market movements. It is also helpful to learn about the people’s sentiments about the particular asset.
The Kline chart usually displays with green and red candles. Each candle is formed based on a specific price. The traders consider green candles as the bullish and red as the bearish candles. These two colors can be used to identify the different patterns of the day, month, and year.
Why Green
When a candle is formed with a closing price that is higher than the opening price, it is always displayed in green color.
Why red
If a candle is formed when the closing price is lower than the opening price, it will be displayed as a red candle.
Thin lines
This line is used to indicate the top and last price of each candle. If the thin line, generate above the green body, it is the upper shadow, it indicates the highest price during the particular trading period. When the thin line below the body is generated, it indicates the lowest price.
K-line is very helpful to learn about the prices. For example, the K-line candle opening price describes the first transaction price at the beginning of the trading period, while the closing price describes the last transaction price. The highest and lowest informed us of the transaction price during a particular timeframe.
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