Morphological Characteristics
The bottom of a continuous decline is called the lower resistance line, which is a buying signal.
(1) "The bottom of a continuous decline" refers to the late stage of the downward trend. The minimum duration of the decline is two weeks. If it lasts more than one month, it will have a more reversal effect.
(2) core line shape: hammer line (the same as the 20 hanging head line) has a short real body, a long lower shadow, and the lower shadow is 3 times the real body. Sometimes the lower shadow is 4 to 5 times that of the entity.
(3) has a gap in the downward jump (Tactics 8 to explore the bottom line does not have a gap or only the entity has a gap).
(4) The hammer line can be a negative line or a positive line. If the entity is particularly short, it can be regarded as a cross star. Their actual meanings are similar. What
(5) needs to confirm is that if it wants to reverse upward, the closing price of the confirmation line cannot be in the shadow line of the hammer line, and must be closed within the real body, or higher than the real body.
The confirmation line is usually the daily line on the second day, but if it continues to close the extremely short-term line, cross star, etc. on the second day, it will not be confirmed until the third or fourth day.
technical meaning
Sakata tactics The explanation for the lower resistance line is that the bulls sold almost completely here, and further decline was no longer possible. Although they once tested low prices, they retreated after failure, and finally ended up with "hanging heads" Line" closing. It is said that in the later stage of the decline, the crazy selling of the day was effectively curbed, and the market finally closed at a higher price. At this time, investors were worried about being short and rushed to the market. If the closing price is higher than the opening price, a positive hammer line is generated, and the situation is more conducive to the upward trend. In the trend after the hammer line appears, if the stock price does not fall below the lowest price of the hammer line, it can be used as a bottoming signal. Since the hammer line is an important bottom reversal signal, once it appears, it is very important to wait for the verification signal the next day. If the stock price can increase in volume, you can go long accordingly. If the stock price falls below the lowest price on the day of the hammer line pattern, it means that the resistance to the decline has failed, and the loss should be stopped in time. The traditional K line theory believes that the lower shadow line is a reflection of the strong purchasing power of bulls and a signal of bottoming out, and the market outlook will rebound. However, actual statistics have found that the lower shadow has downward restraint, especially if a long lower shadow appears in a downward trend, the market outlook will continue to decline. The longer the lower shadow (especially if it is 4 to 5 times as long as the real body), the stronger the downward restraint. Under normal circumstances, it will fall below the lowest point of the lower shadow line again, and the minimum decline will also touch back to 1/2 of the lower shadow line. Only in this way can the bottom be solid and the foundation for the rise be solid.
Summary
The following types of situations will still fall:
(1) The hanging head line closes below the big Yin line. When
(2) is falling, where does the long lower shadow line point to and where does it fall?
(3) shooting star appears at the same time as the hanging line, which is essentially the same as the high wave line or the propeller line.
(4) The lower shadow of the hanging line is too long (4~5 times that of the real body), and it will definitely fall.
will rise in the following situations:
(1) jumps upward after consolidation.
(2) fell late or at a low level, and the Zhongyang line appeared on the second day.
(3) is diverging on the moving average, and the callback does not break the support line.
statistical experience
(1) The anti-fall function is that the cross star is the strongest, the positive line hammer line is second, and the negative line hammer line is the third. If
(2) encounters a long lower shadow (4~5 times), if you sell it at the close of the day, you will definitely be able to take it back at a lower position.
Extended reading : Shooting Star
Shooting Star refers to the sudden appearance of an inverted hammer line with a long upper shadow and short real body in the upward trend, like the aiming head of a gun, so it is called this because the light is short and short. Known as "Meteor". When the market has risen for a period of time, once this line appears, it often indicates that the market may reverse; this line will also appear at the bottom, which is caused by the unstable mentality of investors. Therefore, a shooting star appearing at the bottom is a good buying point, and appearing at the top is a good selling point for
.
morphological characteristics:
shooting star is the same as the inverted hammer line. They have different names because of their different locations. The Inverted Hammer appears late in a downtrend, while the Shooting Star appears late in an uptrend.
(1) appears in an upward trend and usually has a large rise.The entity of
(2) is very small, the upper shadow of and is very long (more than twice the K-line entity), and the lower shadow is very short.
(3) K line can be either negative or positive.
(4) The shooting star is similar to "1" and the hanging line is similar to "T", which are both peaking signals.
Technical Meaning
In an uptrend, the market gapped upward opened , made a new high, and finally closed at the lower level of the day. This shows that the stock price has experienced stagnation and is unable to reach new highs. Subsequently, the stock price has been running below the shooting star entity, indicating that the market is nearing the end.
Sometimes after the "shooting star" appears, the stock price does not immediately enter a downward trend, but moves sideways. According to the principle that a long-term market must fall, the stock price will eventually turn downward, so the shooting star is a sell signal.
The strengthening signal of the top reversal of Shooting Star
(1) Whether the trading volume of Shooting Star has hit the recent high volume. If so, the likelihood of a market top is greater. In addition, if the K-line before the shooting star appears reaches a record high, there is a high possibility that the market will reverse.
(2) Whether the shooting star is trying to break through an important resistance level (such as previous high point resistance, moving average resistance). If the breakthrough is successful, it will evolve into , and if it is unsuccessful, it will become the top.
(3) Changes in stock price center of gravity after the shooting star is formed. If the center of gravity of the stock price moves downward later, the trend signal is confirmed; if the center of gravity of the stock price consolidates sideways, it depends on the position of the stock price. If it is on the way to a rising market, it is mostly a short trap set by the main force; if it is a rising market, If the stock price trades sideways for a long time at the end of the period, the probability of a trend change is very high; if the center of gravity of the stock price moves upward after the shooting star appears, this is also a short trap set by the main force.
(4) Is there a price gap between the shooting star and the previous K-line entity? Standard Shooting Star entities have gaps between them, but this is necessary to become a Shooting Star.
Statistical experience
In short, the top signal of the shooting star is very strong. Whether it is a rise in the bull market, an intermediate rebound, or even a small rebound, as long as the shooting star appears, it indicates that the top has been formed and the market outlook will continue to decline. . Therefore, after the stock price rises sharply, investors should promptly exit the wait-and-see situation when they see the shooting star.
The prodigal son talks about the market from a different perspective to help you achieve your small goal of 100 million! ! [Face covering][Face covering]
