KLine Analysis Lesson 23: The bearish cross pregnancy line of the reversal pattern

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 bearish cross pregnancy line.

Recognition Rule
1）  Previously, the market was in a downward trend;
2）  First rootKThe line is the longer male 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 an upward trend, but after a positive line appeared, it opened low the next day, causing significant price fluctuations. However, the final closing price was equal to the opening price, forming a cross star. The price range did not exceed the first day's price range, and the trading volume on that day shrank. This indicates that both the long and short sides have not reached an agreement on the future trend, and uncertainty has begun to spread in the market. If prices continue to fall on the third day, there is a high probability that the upward 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

2018year6month5Japan Shuanghui Development(000895)After closing the positive line the previous day, on the same day27.78The yuan opened low and eventually fell after intraday price fluctuations0.68%Closing price27.75Yuan, almost on par with the opening price, with trading volume shrinking. The next day, the market continued to open low and move low, followed by a reversal of trend from up to down.


***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.