KLine Refinement Analysis Lesson 29: Revealing Stars in Reverse Form

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, a small negative or positive line appeared when the market opened with a downward jump, with a very small physical part;
3）On the third day, a positive line appeared, similar to the second lineKForm an upward gap between the lines;

Psychological Analysis
The market was originally operating in a downward trend, and the emergence of a large negative line strengthened the confidence of the bearers. The next day, it continued to fall short and open low, but the price did not change much throughout the day. The closing price returned to near the opening price, forming a smaller physical negative or positive line; On the third day, due to certain positive factors, the market may open high and move higher, with active buying. Contrary to the previous downward trend, the market will eventually end up with a medium or high positive line, and the market trend will reverse.

Related Forms
There are similarities with the form of the cross star mentioned earlier, as well as with the cross star mentioned later.

Practical Application

2019year8month27Rijian Ruiwoneng300116After the previous negative line and a low opening small positive line, the high opening and high leaving on the same day ultimately led to9.85%The gains closed and trading volume surged. Afterwards, it gradually reversed into an 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, 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.