KLine Analysis Lesson 16: Insertion Line of Continuous Form

Like the waiting line and entry line, the insertion 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）Second rootKThe line is a positive line,And the opening price is below the first negative line;
3）Second rootKThe closing price of the line should be higher than the closing price on the first day,But not more than the first oneKThe midpoint of the line.

Psychological Analysis
Similar to the waiting and entry lines mentioned in the previous two lectures, the insertion line also reflects the buying of copying the chassis the next day, but it ultimately failed, so the closing price on the second day did not break through half of the negative line on the first day. The failure of this rebound will greatly undermine the confidence of multiple parties, and the subsequent reduction in buying will lead to the market continuing its downward trend.

Related Forms
Compared to the previous waiting and entry lines, the closing price of the second positive line of the insertion line is higher, surpassing the first lineKThe closing price of the line, but less than the first oneKThe middle position of the line.

Practical Application

2018year10month8Ri Chang'anBfall5.03%Closing price5.92Yuan; The next day, the opening price was low and the opening price was low5.88Yuan, then opened low and rose high, ultimately closing up1.01%Closing price5.98Yuan, higher than the previous day's closing price5.92Yuan, but lower than the middle position of the previous day's Yin line entity6.08Yuan. Afterwards, the stock price continued to decline, and one year later, today in Chang'anBThe stock price is3.44Yuan, close to halving.

As of this lecture,KPart 1 of Line Refinement Analysis - Continuous Form All introductions have been completed,Starting from Lesson 17,We will continue to learnKLine Analysis 3--Reverse form.

***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.