Naked k trading refers to the trading mode determined by a simplified or "naked" price chart. This trading model does not have many technical indicators, but only relies on the pure candle chart, and uses the pressure/support position and trend in the candle chart to judge the timing of buying or selling.
The analysis method of naked K has several preconditions:
(1) define the chart. Naked K analysis should be based on the chart of H 1 or above, so the analysis results will be held for a long time, at least one hour. Usually, it is best to look at H4, daily line and weekly line. The charts of M30, M 15 and M5 are not recommended for naked K analysis.
(2) Limited to one variety, K-line changes of different varieties are different. Gold fluctuates greatly, while Australia and the United States fluctuate less. Only one K line is used to analyze the two, and the results are quite different. No matter who looks at a single K-line, it is the trend of K-line. Considering several or a dozen K-lines, the trend of K-lines is different from that described in the Japanese candle chart. The main concern is the trend of K-lines, followed by the shape of K-lines.
③ Limit the span of the chart. The minimum span of the chart of H 1 should be more than 10 days, the span of H4 should be more than 30 days, and the span of daily chart should be more than 3 months.