KLine Analysis Lesson 22: The Bullish Cross Pregnancy Line of the Reverse Form

The cross pregnancy line is actually the evolution of the previous two lectures on pregnancy lines, the second oneKThe physical part of the line disappears, and its shape is similar. The bullish and bearish signals are also consistent. In this lecture, we will also talk about the bullish cross 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 a cross star (with the same opening and closing prices);
3）  The cross star that appeared on the second day did not exceed the physical range of the first day's overcast line.

Psychological Analysis
The analysis of the cross pregnancy line is similar to that of the previous pregnancy line: the market was originally in a downward trend, but after a negative line appeared, it opened high the next day and experienced significant fluctuations in prices. However, the final closing price was equal to the opening price, forming a cross star, and the price range did not exceed the first day's price range, and the trading volume on that day increased. This indicates that the long and short sides have not reached an agreement on the future trend, and uncertainty has begun to spread in the market. If the price continues to rise on the third day, it is highly likely to confirm that the downward trend has reversed.

Related Forms
The cross pregnancy line is actually an extreme evolution of the previous two lectures on pregnancy lines: the second oneKThe physical part of the line disappears, with a similar shape and consistent bullish and bearish signals.

Practical Application

2019year1month31Shanghai Pharmaceutical Co., Ltd(601607)After the previous day's closing of the negative line, on the same day15.67Yuan Gao Kai, after intraday price fluctuations, ultimately rose0.38%Closing price15.69Almost on par with the opening price. The next day, the market continued to open high and rise high, then turned from a decline to a rise, and the trend reversed.

***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.