KLine Refinement Analysis Lesson 14: The Waiting Line of Continuous Form

Recognition Rule
1）  Previously, the market was in a downward trend, and on the first day, it closed with a large negative line;
2）  On the second day, it jumped short, opened low, and rose high, narrowing the positive line. The opening and closing prices were both below the first negative line entity, which was actually a false positive line;
3）  The entity of the second false positive line is shorter and belongs to the small positive line, otherwise it is easy to be confused with the bullish date line in the reverse form that will be discussed later.

Psychological Analysis
The waiting line belongs to the sustained form of a bear market, with the first day's large negative line confirming the current bear market trend. The second day, the market opened low and continued the bear market trend. Then, there began to be a trend of taking a bottom, driving the stock price up. However, the closing price remained below the previous day's closing price, indicating weak buyer power. Almost all funds entering the market to take a bottom were trapped, and the downward trend will continue in the short term.

Related Forms
The entry line is similar to the entry line and insertion line that will be discussed later, and the differences will be discussed later.

Practical Application

2016year1month4Riwanda Film fell below the limit, closing price71.60Yuan; The next day, the stock price jumped short and opened low. The opening price67Yuan, after a full day of volatility, the final closing price68.93Yuan, with a small positive line, the daily decline3.73%It is actually a false positive line. Afterwards, the market continued its downward trend. Today, more than three years later, Wanda Film's stock price is only16.75Yuan.

***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.