Figure 1
piercing head and feet Yin line consists of two K-lines, generally appears in the upward trend, and the length of the second K-line (yin line) must be enough to eat the entity of the first K-line ( positive line or cross positive line) (Figure 1).
stock price is running at the top , and shows a positive trend . follows the next day the stock price opens and opens higher than the previous day's closing price or the previous day's closing price. After the stock price opened, it was strongly suppressed by the short side and fell all the way. During the decline, the bulls were not very active. Although there were occasional counterattacks, it was ultimately suppressed by the short side. As of the close of the market, the stock price closed a large negative line that fell, and the closing price was lower than the opening price of the previous day. The K-line of this trend appears in , which is called the penetration of the head and the foot.
piercing the head and breaking the negative line is a signal of the stock price falling, and this signal is strong. When the stock price breaks through the head during the running process, it means that the bear side has a strong momentum, and the bull side will be defeated in one fell swoop, and the trend will turn a reversal. Since the previous positive line can be swallowed up, the strength of the bears is shown by the strength of the bears, the power of the bulls is exhausted and there is no power to fight back. At least when the sky has completely controlled the initiative, if the bulls cannot counterattack, the possibility of a decline in the future market is very high. Investors should not follow up rashly at this time.
piercing the head and breaking the feet negative line stock market case analysis:
① The high after the stock price has risen for a long time, indicating that the selling price has increased significantly. This is a sign of the main force's shipment, and the stock price is bearish in the future.
Figure 2
As shown in Figure 2 is a schematic diagram of Changhong Huayi (000404) July 2022 K-line. From the figure, we can see that before the stock price reaches the highest price of 9.05, the stock price rose by more than 70%. On July 14, the stock price opened high and closed low and closed , closing a large negative line, forming a top-passing and breaking the head and feet negative line (referred to by the yellow box in Figure 2). After that, the stock price stagnated at a high level of and was unable to rise, and soon entered a continuous decline, with a huge decline.
On the day when the top broke through the negative line, the stock price stood at a very high position as soon as the market opened, setting a new high in this rebound. Unfortunately, this new high is a very false victory - a stock price fell all the way after opening a sharply higher. If this is just the main force deliberately suppressing the stock price and preparing to raise the stock price, there will be a signal of rising stock prices. Let’s observe the subsequent trend: after breaking through the head and breaking the negative line of the foot, a bare foot that jumps low and opens. The mid-yin line with a long upper shadow line means that the stock price is under heavy pressure from the short side, which can be regarded as a turning signal. The stock price after consolidation directly broke downward, and the subsequent decline was serious.
You need to be cautious when investing at a high level and avoid blindly chasing highs. If the stock price rebounds by more than 30%, it will be a sharp rebound by . The stock price in this case rose by more than 70% before hitting a new high. If the stock price fluctuates the next day after the top through the head and feet, or in the next few days, and during the fluctuation, the trading volume will be significantly increased, and active selling orders will continue to surge out, and the center of gravity will gradually move down. When this happens, we can be sure that the main force is shipping, and the stock price will definitely fall in the future.
② Due to its strong characteristics of breaking through the head and feet, many main players like to use it to intimidate investors to hand over their chips and create traps to attract short .
Figure 3
Above Figure 3 is a schematic diagram of the daily K line of Southern Seiko (002553) in July 2022. After the stock was consolidated at the bottom, the stock jumped high on July 5th, hitting the previous high, but was hit by a strong attack by the bears. The stock price fell all the way, and it happened to swallow the previous day's positive line (referred to by the yellow box in Figure 3), forming a combination of head-breaking and feet. The stock price continued to rise in the future, and continued to consolidate and surpassed the previous high. It can be seen that the piercing of the head and feet in front was just a trap for attracting shortage.
If the stock price breaks through the head and feet during a steady rise, the trading volume will not shrink significantly on the day when the stock price continues to strengthen the next day and closes a positive line, investors can feel at ease to hold and buy, and the stock price will inevitably continue to rise in the future; on the day when the stock price breaks through, the stock price closes through the head and feet, the trading volume will significantly increase, and there are a lot of profit-taking returns, so investors should not rush to buy. In this case, the stock price will often fall to a certain extent in the future. You might as well wait until the stock price stabilizes before buying.
Of course, needs to identify whether it is a trap or not, and to observe its overall position in the stock price. If the stock price is in the early or medium stage of the upward trend and the overall increase is not very large, then it is very likely that the penetration of the head and foot Yin line is a trap. If the stock price has risen sharply, the penetration of the head and foot Yin line should be a real decline in the stock price. If the market stops falling soon, there is a high possibility of a trap, which is a better buying point.
Consolidation is a stage where stocks accumulate strength. The longer the consolidation stage, the more strength the stocks have to climb higher. After accumulating strength for a long time, the stock has made a strong breakthrough, and the main force's ambition should be quite large. If the trading volume of breaks through the head and feet on the negative line on the day shrinks, it means that the main force has not escaped and is suspected of luring the short. In the end, the stock price of did not continue to fall, but turned upward. This is also a good time for investors to increase their bargaining chips. (End)
