KLine Analysis Lesson 12: Three Methods of Upward Jumping in Continuous Form

Recognition Rule
1）  Previously, the market was in a strong upward trend, and on the first day, it rose and closed positive;
2）  The next day, jump high and open high, close the second positive line;
3）  On the last day, the market opened low and closed negative, with the closing price within the physical range of the first positive line.

Psychological Analysis
The market operates in the original upward trend, and the gap of short opening and high opening further reflects the strong upward willingness of the market. On the third day, the market opens low and moves low, with the opening price within the range of the second positive line entity and the closing price within the first positive line entity. This completely fills the gap of short opening and high opening, also known as "filling the gap". The filling of this gap can be seen as a recognition of the original market trend, and the low opening and low closing on the third day can be seen as profit taking.

Related Forms
This form is similar to the parallel yin and yang lines in the first lesson, with the difference being that the third yin line in the three methods of upward jumping completely fills the gap in the upward jump.

Practical Application

2019year1month28Day, Wuliangye opened54.30Yuan, closing positive line up55.77Yuan, up4.115%； High opening the next day0.23Yuan, opening price55.90After the yuan, it continued to rise to the close, with an increase of1.99%Closing price56.88Yuan; Low opening on the third day0.19Yuan, opening price56.69After the yuan, it fell all the way down until the close of the day2.29%Closing price55.58Yuan, fully fill the gap in the previous day's short jump and upward trend. Afterwards, the market continued its previous upward trend.

***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.