KLine Refinement Analysis Lesson 9: The Paving Form of Continuous Form

Recognition Rule
1）On the first day, it was the big positive line, continuing the previous upward trend;
2）On the second day, it opened high and closed low, but the closing price was still higher than the previous day's closing price, forming a small short gap;
3）On the third and the fourth day days, we continued to open high and walk low, closing down the negative line. The top and bottom of the second, third and fourth negative lines kept falling, and the closing price of the last small negative line was within the first large positive line entity;
4）On the last day of the jump, open high and walk high, close the positive line, and form a larger gap in the jump compared to the previous day.

Psychological Analysis
The first positive line continues to show that the current trend is in an upward trend. The next day, it bounced short and opened in a narrow range, fluctuating downward. The closing price fell slightly, but compared to the previous day, the closing price was still up and still reached a new high. It indicates that it is just a break in the upward process. Some cautious investors are afraid of the end of the upward trend and sell the stock for profit. The trend continues for the next two days, indicating that there are still investors who are starting to sell, but the closing price has been above the opening price on the first day. This indicates that the downward trend is only a temporary phenomenon and has strong bearing power.

On the last day, the market opened high and rose, recovering from the previous three days' decline in one fell swoop, indicating that the bull market has not ended, and the decline is only an adjustment in the upward trend.

Related Forms
The bedding pattern is similar to the rising three methods, with the difference being that the first negative line in the middle of the bedding pattern is above the first positive line, and the bullish signal in the future is stronger.

Practical Application

2018year3month9On the day of the Sun, a new era emerged in the Haitian Flavor Industry5.23%Big positive line, closing price57.15Yuan, the next day with57.65Yuan opened high, then opened high and went low, narrowing the negative line. Afterwards, a small negative line and a cross star appeared consecutively, and on the fifth day, a new one emerged3.72%Set a new high in the stage with a positive line58.24After that, the stock price continued to rise.

This trend is slightly different from the standard bedding form, with the third star in the middle receiving a cross instead of a small negative line, but still within the physical range of the first positive line, and the core logic still applies.

***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.