What are positive and negative lines? What is the difference between them?

The positive line in the K-line chart indicates a price increase, usually green, and the negative line indicates a price decrease, usually red, helping traders analyze market trends and make decisions.

Apr 03, 2025 at 02:47 pm

In the cryptocurrency market, the K-line chart is a commonly used technical analysis tool to show price changes. Each "candle" in the K-line chart represents the price trend over a period of time, among which "yang line" and "yin line" are two key concepts. Understanding them is essential to analyzing market trends and making trading decisions.

What is a positive line?

A positive line , also known as an upward candle or a green candle, means that the closing price of an asset is higher than the opening price during a specific period of time. This is often seen as a bullish signal that buyers dominate the time period. The specific characteristics of the positive line are as follows:

• Opening price is lower than closing price : the bottom of the positive line (opening price) is lower than the top (closing price).

• The color is usually green or white : In most charting software, the positive line is displayed in green or white to distinguish it from the negative line.

• The entity part represents the range of price changes : the entity part from the opening price to the closing price, and the length represents the extent of the price increase.

For example, if Bitcoin opens at $30,000 and closes at $32,000 on a certain day, a positive line will be displayed on the K-line chart for that day, indicating that the price has risen by $2,000 in the day.

What is a yin line?

A negative line , also known as a falling candle or a red candle, indicates that the closing price of an asset is lower than the opening price during a specific period of time. This is often seen as a bearish signal that sellers dominate during that time period. The specific characteristics of the negative line are as follows:

• Opening price is higher than closing price : the top (opening price) of the negative line is higher than the bottom (closing price).

• The color is usually red or black : In most charting software, the negative line is shown in red or black to distinguish it from the positive line.

• The entity part represents the range of price changes : the entity part from the opening price to the closing price, and the length represents the extent of the price decline.

For example, if Ethereum opens at $2,000 and closes at $1,800 on a certain day, a negative line will be displayed on the K-line chart for that day, indicating that the price has fallen by $200 in the day.

The difference between a positive and a negative

The main difference between positive and negative lines is the price trends and market sentiment they represent. Here are their main differences:

• Price trend : A positive line indicates a price increase, and a negative line indicates a price decrease.

• Market sentiment : The positive line usually reflects the strong buyer's strength and the market is bullish; the negative line reflects the strong seller's strength and the market is bearish.

• Color and display : The positive line is usually shown in green or white, and the negative line is usually shown in red or black.

• Entity length : The physical part of the positive line represents the amplitude of the price increase, and the physical part of the negative line represents the amplitude of the price decline.

How to identify positive and negative lines on trading platforms?

On most cryptocurrency trading platforms, it is very simple to identify positive and negative lines. The following are the specific steps:

• Select a K-line chart : On the trading platform, select the cryptocurrency you want to analyze and switch to the K-line chart view.

• Observe color : The positive line is usually shown in green or white, and the negative line is usually shown in red or black.

• View the entity part : The physical part of the positive line is from the opening price to the closing price, and the physical part of the negative line is from the opening price to the closing price.

• Analysis of upper and lower shadows : The upper and lower shadows represent the fluctuation range of the price between the opening and closing. The shadows of the positive and negative lines can help you understand the price trend more comprehensively.

Application of positive and negative lines in trading

Positive and negative lines have important application value in cryptocurrency trading. Here are some common application scenarios:

• Trend confirmation : The continuous positive lines may indicate the market is in an upward trend, while the continuous negative lines may indicate the market is in a downward trend.

• Reversal Signal : Long negative lines appearing in an upward trend may indicate a trend reversal, and vice versa.

• Support and Resistance : Highs and lows of both positive and negative lines can help identify support and resistance levels.

• Trading decision : Traders can decide the timing of buying or selling based on the appearance of positive and negative lines. For example, buy after the positive line appears and sell after the negative line appears.

Combination of positive and negative lines

The combination of positive and negative lines can form various forms, which have important reference value in technical analysis. Here are some common combinations:

• Engulfing pattern : A positive line completely covers the previous negative line, or a negative line completely covers the previous positive line, is usually regarded as a strong reversal signal.

• Pregnancy line pattern : A small positive or small negative line appears after a large positive or large negative line and is usually regarded as a signal of a pause or reversal of the trend.

• Cross star : The opening and closing prices are almost the same, forming a cross shape, which usually indicates an increase in market uncertainty.