KLine Refinement Analysis Lesson 8: Sustained Form of bearish breakup line

Recognition Rule
1）The market was in a downward trend before, followed by a large positive line;
2）Then a second large negative line appears, and the opening price is the same as the opening price of the first negative line;

Psychological Analysis
Suddenly, a large positive line appeared in the downward trend, which inevitably caused investors' speculation and suspicion. However, the market opened low the next day and the opening price was the same as the previous day, completely reversing the decline, and then fell all the way to the closing. This indicates that the previous downward trend did not change direction due to the first positive line, and the market still continues its original downward trend. The longer the entity of the second negative line, the shorter the up and down shadow lines, and the stronger the bearish signal in the future.

Related Forms
None.

Practical Application

2019year4month30After a consecutive week of negative declines, Nissan Automobile Group2.59%Increase in opening price25.46Yuan, open low on the second day, opening price25.38Yuan, almost on par with the opening price of the previous day, continued to decline on the same day and ultimately closed lower4.82%After that, it continued to decline for about three weeks and created19Annual lowest price21.43Yuan.

***Risk statement***
KLine analysis is only an indicator tool used to judge the strength of buyers and sellers in the market and market sentiment. How to identify and study is subjective to some extent. It may not be correct to judge the future market. Many fundamental investors never analyzeKChoosing to hold high-quality individual stocks for a long time has also resulted in significant returns. Please evaluate for yourself whether and how to use itKLine tool.