KLine Analysis Lesson 18: Inverted Form of the Hanging Neck Line

The "hanging neck line" to be introduced in this section and the "hammer line" mentioned in the previous section are both made with a long shadow lineKThe difference between the "hanging neck line" and the "hammer line" is that the cow turns to the bear, while the "hanging neck line" is that the bear turns to the cow.

Recognition Rule
1）Previously, the market was in an upward trend;
2）Afterwards, there appeared a very short entity with a long shadow lineKThe length of the shadow line is almost the length of the solid2~3Times or more;
3）KThe color of the line entity is not important, it can be a positive line or a negative line;
4）KLines should not have overhead lines or even if there are overhead lines, they should be very short;

Psychological Analysis
The market itself is in an upward trend. After the opening, the market continues to rise, and then there is a continuous increase in selling, driving prices to rapidly decline. Later, as buying enters, the stock price begins to rebound and closes at the lower price of the day. The buyer's power has also been greatly released in a short period of time. If the closing price is lower than the opening price, the hanging neck line of green entities will be closed, and the bearish signal in the future will be stronger. If the entity of the hanging neck line on that day is green, which is a small negative line, and the opening price of the next day is lower than the closing price of the hanging neck line on the previous day, it is possible to determine that the trend has shifted from upward to downward.

Related Forms
None.

Practical Application

2019year8month30China Guanghe Nuclear Corporation has been listed consecutively before4After a limit up, there was no further limit up opening, but the opening price on the same day5.22Yuan, once soaring to5.25Yuan, distance from limit up price5.27Yuan only difference2Divided the money, and then the stock price quickly fell, dropping to4.80Since then, there has been a continuous influx of buying, and after several fluctuations, the final closing report5.18Yuan, increase8.14%Collect a false negative line. Afterwards, the stock price changed from a strong rise to a continuous negative decline, which is more common in the trend of new stocks after the opening of the market.

*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.