Concepts & Tools

Overview

When participating in crypto lending and borrowing, it is important to monitor market trends and assess risks. Exchanges provide charts, candlestick views, and trading indicators to help users analyze asset price movements, evaluate borrowing opportunities, and manage lending risks more effectively.

1. Charts

Charts provide a visual representation of price and market activity for each cryptocurrency. They help users:

• Track historical price trends.

• Identify support and resistance levels.

• Monitor volatility, which may impact interest rates and borrowing risk.

Key Tip: For lenders, monitoring charts helps assess the stability of the asset being lent. For borrowers, it helps time entry and exit to avoid borrowing during highly volatile conditions.

2. Candlesticks

A candlestick chart shows how the price of an asset has moved during a specific time interval (e.g., 1 minute, 1 hour, 1 day). Each candlestick contains four key data points:

• Open – The price at the beginning of the interval.

• Close – The price at the end of the interval.

• High – The highest price reached during the interval.

• Low – The lowest price reached during the interval.

Usage in Lending & Borrowing:

• Candlesticks help identify short-term vs. long-term market trends.

• Sharp price movements may signal higher borrowing risk (liquidation risk).

• Stable price patterns suggest safer lending or borrowing conditions.

3. Indicators

Indicators are technical analysis tools applied to charts that help interpret market conditions. Commonly used indicators include:

• Moving Averages (MA / EMA): Show overall trend direction. Helpful to decide when to borrow or repay.

• Relative Strength Index (RSI): Measures overbought or oversold conditions. Can indicate potential price reversals.

• Bollinger Bands: Reflect price volatility; wide bands suggest high volatility, which may increase liquidation risk for borrowers.

• Volume Indicators: Show trading activity; high volume may mean stronger support/resistance levels.

Usage in Lending & Borrowing:

• Borrowers can use indicators to avoid entering positions in overheated markets.

• Lenders can use them to gauge market sentiment before supplying assets.

Key Points to Remember

• Charts and candlesticks visualize market data, helping both borrowers and lenders make informed decisions.

• Indicators provide deeper insights into trends, momentum, and volatility.

• Monitoring these tools helps reduce risks, such as unexpected liquidations for borrowers or asset devaluation for lenders.

Why a Filled Order May Not Appear on the K-Line？

A common reason for this situation is how candlestick (K-line) charts are constructed versus how individual trades are executed and displayed.

1. Candlestick Aggregation

   • Each candlestick (K-line) represents the open, high, low, and close prices within a set time interval (e.g., 1 minute, 5 minutes).

   • If your trade occurred at a price between the recorded high and low, but it did not exactly match the open, close, or extreme values, it will not appear as a labeled point on the candlestick itself.

2. Trade Matching vs. Chart Data

   • The execution price of your order comes from the order book matching engine.

   • The candlestick chart is based on a stream of trades during each interval, but depending on chart compression and data aggregation, not every individual trade is visible.

3. Low Volume or Rapid Price Movements

   • If there was very little trading activity, your trade might have occurred at a price level not revisited by other trades within that candle.

   • Charts often display only the highest and lowest trade prices in the timeframe, so intermediate prices (including yours) may not be obvious.

4. Chart Provider Variations

   • Depending on the charting system or data feed, some platforms may round, filter, or slightly delay certain ticks.

   • This can cause differences between what you see on the chart and the precise execution record of your trade.

Key Takeaway

Your order was executed correctly at the market price available in the order book. However, because candlestick charts only show summarized price points (open, high, low, close) for each interval, not every individual execution price will be visible on the K-line. For exact trade prices, always refer to your order history or trade log rather than the chart.