KLine Analysis Lesson 15: The Entry Line of Continuous Form

Like the entry line, the entry line is also a form of sustained bear market.
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, jump short, open low, and move high, closing the positive line. The opening price is lower than the closing price of the negative line on the first day, and the closing price is slightly lower than the closing price of the negative line on the first day or at the same level as the closing price on the previous day;

Psychological Analysis
The psychological analysis of the entry line is similar to the analysis of the waiting line in Lesson 14, but the difference is that the downward trend of the entry line is not as strong as the waiting line, so the closing price on the second day is higher than the waiting line.

Related Forms
As mentioned above, compared to the waiting entry line, the closing price of the second positive line is slightly higher, almost the same as the closing price of the first large negative line

Practical Application

2017year3month22Zhongnan Construction fell below the limit, closing price8.22Yuan; The next day, the stock price jumped short and opened low. The opening price8.15Yuan, after a full day of volatility, the final closing price8.23Yuan, almost on par with the previous balance, closing with a small positive line, with a daily increase0.12。 Afterwards, the market continued its downward trend,2017Reaching the lowest annual price5.86Yuan.

***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.