KLine Refinement Analysis Lesson 28: Cross Star of Inverted Form

The cross star is divided into two types, representing the reversal of a bear market and a bull market. This lecture will only analyze the bear market reversal in the left image, and the other one will be left for your own analysis.

Recognition Rule
1）The market was originally in a downward trend, with a large negative line appearing on the first day;
2）The next day, the market continued to open low and eventually closed with a cross star;
3）The upper and lower shadows of the cross star cannot be too long;

Psychological Analysis
The market was originally operating in a downward trend, and the emergence of a large negative line strengthened the confidence of the bears. The next day, it continued to open lower, but although there were fluctuations throughout the day, the fluctuation range was not large, and the final closing price was almost equal to the opening price. This form greatly consumes the energy of the bears and releases their emotions. If the market continues to open at a higher price on the third day, it indicates that the market trend has reversed.

Related Forms
The cross shaped star actually reflects the first two days of the cross shaped star and cross shaped star mentioned later.

Practical Application

2018year9month17Rihaili Biology(603718)After the previous continuous negative decline, the same day continued with7.10Yuan low opening3Points, followed by a narrow range of fluctuations throughout the day, reaching a new low during the session7.01Yuan, up until closing0.14%Closing price7.14Yuan; The next day, the limit was raised, followed by a rise.

***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, and it needs to be determined in combination with volume and other factors. It may not be completely accurate 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.