KLine Analysis Lesson 20: The bullish pregnancy line of the reversal form

There are two types of pregnancy lines, the bullish pregnancy line and the bearish pregnancy line. In this lecture, we will first talk about the bullish pregnancy line, and in the next lecture, we will introduce the bearish pregnancy line.

Recognition Rule
1）  Previously, the market was in a downward trend;
2）  First rootKThe line is the longer, darker line of the entity, the second oneKThe line is the shorter male line of the entity;
3）  TwoKThe top or bottom of the line can have up to one overlap, but the second male line entity is completely contained by the first female line entity.

Psychological Analysis
The market itself is in a downward trend, and the big negative line on the first day has strengthened the confidence of the bears, but the trading volume has not significantly increased and is in a relatively average state. The next day, the market opened high, and some short sellers began to change their minds and turn long, causing prices to rise. Some hopeful investors also began to enter and buy long. The market price and trading volume began to rise gradually. Indicates a change in market trends. If the market price continues to rise on the third day, it indicates that the reversal of the trend has been confirmed.

Related Forms
The bullish pregnancy line is actually the first two days of the three internal rise pattern that will be discussed later.

Practical Application

2019year1month14Fosun International（00656）Continuing the previous downward trend, the day closed at a negative line, with a decline3.14%Opening price10.28Hong Kong dollars, closing price9.88Hong Kong dollars, trading volume1.49HKD 100 million; The next day with9.92The Hong Kong dollar opened high and continued to rise, closing higher3.24%Closing price10.20Hong Kong dollars, trading volume1.69HKD billion, significantly larger than the previous day. But on the second day, the positive entity was completely included in the first day, and on the third day, the market continued to open high and rise high. Afterwards, the downward trend of the market began to reverse, starting a nearly month long upward 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.