What are the common single K-line patterns and what are their respective meanings?

The K-line chart is a commonly used analysis tool in cryptocurrency trading. The positive line indicates the buyer's strength, the negative line indicates the seller's strength, the cross star reflects the market balance, and the hammer line and the hanging neck line indicate the reversal.

Apr 03, 2025 at 02:43 pm

In cryptocurrency trading, K-line charts are one of the most commonly used tools in technical analysis. Single K-line patterns can provide important information about market sentiment and potential price trends. This article will introduce in detail several common single K-line patterns and their meanings.

Bullish Candle

A positive line refers to a K-line pattern with a closing price higher than the opening price. This pattern usually means that the market has strong buyers and the price is on the rise. The longer the physical part of the positive line, the stronger the buyer's strength and the stronger the bullish sentiment in the market.

The specific meaning of the positive line includes:

• Market bullish : Investors are optimistic about the market outlook and are willing to buy at a higher price.

• Buyer strength : Buyer dominates the transaction period, driving prices up.

• Potential upward trend : If the positive line appears in the bottom area after a long-term decline, it may indicate the beginning of a price reversal.

Negative line (Bearish Candle)

A negative line refers to a K-line pattern with a closing price lower than the opening price. This pattern usually means that the market seller has strong strength and the price has a downward trend. The longer the physical part of the negative line, the stronger the seller's strength and the stronger the bearish sentiment in the market.

The specific meanings of the negative line include:

• Market bearish : Investors are pessimistic about the market outlook and are willing to sell at a lower price.

• The seller has strong strength : The seller takes the lead during the transaction period, driving the price to fall.

• Potential downtrend : If the negative line appears at the top area after a long-term uptrend, it may indicate the beginning of a price reversal.

Doji

The cross star refers to the K-line pattern with almost the same opening price and closing price. This pattern usually means that the market has equal strengths of buyers and sellers, and the market is in a state of equilibrium. The emergence of cross stars often indicates that the market may soon change.

The specific meaning of the cross star includes:

• Market uncertainty : Investors are uncertain about the market direction, and buyers and sellers are in equal strength.

• Potential reversal signal : If the cross star appears after a long-term upward or downward trend, it may indicate the beginning of a price reversal.

• Market balance : The market is in a temporary state of balance, and the buyer and seller have equal strength.

Hammer thread (Hammer)

The hammer line is a special kind of positive line with a longer lower shadow and a smaller solid part. This pattern usually appears at the bottom of a downtrend, indicating that the market may be about to reverse.

The specific meaning of the hammer line includes:

• Buyer strength enhancement : Although the price fell for a while, the buyer successfully pushed up the price before the closing, showing the increase in buyer strength.

• Potential bottom signal : The hammer line appears at the bottom of the downtrend, which may be a signal of a price reversal.

• Improved market sentiment : Market sentiment has shifted from pessimism to optimism, and investors have begun to take a positive attitude towards the market prospects.

Hanging Man

The hang neckline is a special kind of yin line with a longer lower shadow line and a smaller solid part. This pattern usually appears at the top of an uptrend, indicating that the market may be about to reverse.

The specific meanings of the hang neckline include:

• Seller strength enhancement : Although the price once rose, the seller successfully lowered the price before the closing, showing the increase in the seller's strength.

• Potential top signal : The hanging neckline appears at the top of the uptrend, which may be a signal of a price reversal.

• Market sentiment deteriorates : Market sentiment changes from optimism to pessimism, and investors begin to take a negative attitude towards the market outlook.

Shooting Star

The Shooting Star is a special kind of yin line with a longer upper shadow and a smaller solid part. This pattern usually appears at the top of an uptrend, indicating that the market may be about to reverse.

The specific meanings of Shooting Star include:

• Seller strength enhancement : Although the price once rose, the seller successfully lowered the price before the closing, showing the increase in the seller's strength.

• Potential top signal : Shooting stars appear at the top of the uptrend, which may be a signal of a price reversal.

• Market sentiment deteriorates : Market sentiment changes from optimism to pessimism, and investors begin to take a negative attitude towards the market outlook.