KLine Refinement Analysis Lesson 13: Three Methods of Downward Jumping in Continuous Form

Recognition Rule
1）  Previously, the market was inStrongA downward trend, with the first day ending negative;
2）  The next day, jump low and open low, close the second negative line;
3）  On the last day, the market opened high and closed positive, with the closing price within the physical range of the first negative line.

Psychological Analysis
The market is operating in the original downward trend, and jumping short to open a gap reflects the strong downward willingness of the market; On the third day, the market opened high and rose high, with the opening price within the second negative entity and the closing price within the first negative entity. This completely fills the gap of short opening and low opening, also known as "gap filling". The filling of this gap can be seen as a recognition of the original trend of the market, and the filling of the gap on the third day with low opening and low moving can be seen as buying to copy the chassis or closing short positions.

Related Forms
This form is similar to the parallel yin and yang lines in the downward jump in the second lecture, but the difference is that the third yang line in the downward jump in the three methods completely fills the gap.

Practical Application

2018year6month27dayFosun Pharma (600196)Closing down5.89%Closing price40.27Yuan; On the second day, the price jumped low and opened at the opening price39.83Yuan, down on the same day3.50%Closing price38.86Yuan; On the third day39The opening price of the yuan is high, opening high and rising4.71%Closing price40.69Yuan, fully compensate for the low opening gap of the previous day's jump. Afterwards, the market continued its downward 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.