Candle line consists of solid line and shadow line. The entity represents the difference between the opening price and the closing price in this time period, and the hatched line represents the highest price and the lowest price in this time period. When the closing price is higher than the opening price, the candle line is a positive line, indicating that the price is rising; When the closing price is lower than the opening price, the candle line is a negative line, indicating that the price has fallen. Therefore, by observing the color and length of the candle line, we can understand the changing trend of the market price.
The following is the way to distinguish between yin and yang lines:
1. Observe the color of the candle line: the positive line is white (or red) and the negative line is black (or green). Generally speaking, the positive line indicates that the price is rising and the negative line indicates that the price is falling.
2. Observe the solid line part: the solid line part of the male line is at the upper part of the candle line, and the solid line part of the female line is at the lower part of the candle line. The length of the entity part indicates the range of price change, and the longer the entity part indicates the greater the range of price change.
3. Observe the shadow line: the shadow line or shadow line of the positive line is short, and the shadow line or shadow line of the negative line is short. The shaded part indicates the highest or lowest price of the price in this time period. The longer the hatched part, the greater the price fluctuation during this time period.
Through the above methods, you can easily distinguish the yin and yang lines in the foreign exchange candle map. Mastering the interpretation skills of candle chart will help investors to better analyze and predict the price trend of foreign exchange market.