KLine Analysis Lesson 25: Meteor Lines in Reverse Form

Meteor lines can be used to determine whether the market's upward trend has ended, but it is important to note that a single meteor line cannot be used to determine a market reversal. It only makes sense when it appears at a high market level. The entity of the meteor line is different from the previous day'sKA small gap is formed between the line entities, which must be combined with the previous day when making judgmentsKThe variation of the line.

Recognition Rule
1）In the upward market trend, the first oneKIt is better to have a positive line;;
2）The next day, there was an upward jump gap,KThe line shape is also an inverted hammer line, only appearing at the top of the market;
3）TwoKThere must be an upward gap between the lines;
4）Second rootKThe length of the overhead line of a line usually exceeds three times the length of the entity; And it is best not to have a downline or a very short downline.

Psychological Analysis
The market originally operated in an upward trend, but suddenly an upward gap appeared at the opening of a trading day, and the market price hit a new high, but the upward trend was not supported, and the price began to fall back, and finally closed at a price slightly lower than the opening price. The upward gap and long up shadow line are both considered indicators of a bear market. This situation will stimulate multiple parties to take profits and make a safe bet.

Related Forms
None.

Practical Application

2018year11month16Rilianchuang Co., Ltd(300343)In the situation where the daily limit was raised the previous day, it opened high and closed low on the same day, ultimately ending in a meteor line. After that, it continued to rise for two more days2However, it did not reach a new high, and then a meteor line appeared on the the fourth day. Although the follow-up trend has been repeated, the general trend has reversed from rising to falling.

*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