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How to Quickly Draw Price Lines and High/Low Price Lines
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In the cryptocurrency market, price lines and high/low price lines are fundamental technical analysis tools. They help traders better understand market trends and price dynamics, enabling them to make more informed trading decisions.
1. What Are Price Lines and High/Low Price Lines
In cryptocurrency market K-line charts, the price line usually refers to the line representing the closing prices. Connecting the closing prices of a token within a certain time range forms the line chart we commonly see.
The high/low price lines refer to the lines formed by the highest and lowest prices on a K-line chart. These lines show the range of price fluctuations within each trading period, providing key information about price volatility and the price range.
As shown in the image, during the time period displayed, the high/low price lines are represented by the black dotted lines at the highest price of 61,380.8 USDT and the lowest price of 57,499.7 USDT. The BTC perpetual futures fluctuated within this price range from August 17 to August 20. The red price line at 60,807.6 USDT represents the closing price of the BTC perpetual futures in the current market.
2. How to Quickly Draw Price Lines and High/Low Price Lines on MEXC
On the MEXC futures trading page, right-click on the Original K-line chart. In the pop-up menu, select [Price line] or [High and low price lines] to draw them easily.
When you scroll left or right on the K-line chart or click on the time interval buttons (such as [1m], [5m], [1H], etc.), the time range displayed on the K-line chart will change, and the high/low price lines you have drawn will also change accordingly. However, the price line will continue to show the latest closing price.
3. Functions of Price Lines and High/Low Price Lines
Trend Analysis: Using a line chart composed of price lines can help users analyze the overall trend of prices, determining whether the price is rising, falling, or staying flat. When combined with the movement of high/low price lines, it can further confirm the trend and volatility of prices.
Identifying Support and Resistance Levels: The high/low price lines show the range of price fluctuations, which helps traders identify support and resistance levels, guiding them on where to set stop-loss and take-profit points.
Trading Decisions: These lines help users develop trading strategies and determine the optimal timing for buying or selling.
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, consultation, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.