KLine Analysis Lecture 31: The Cross Star of Reverse Form

The cross star is an evolutionary form of the cross star, and the cross star is only a sign of a change in direction. If a large positive line is added on the third day, it can basically confirm the occurrence of a reversal.

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 cross star appeared in the downward jump;
3）On the third day, a large positive line appeared in the upward jump;

Psychological Analysis
The market was originally operating in a downward trend, and the emergence of a large negative line further 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 the opening price, forming a bottom cross star; 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
It is very similar to the previous Qixing star, but the difference is that the second root of the cross Qixing starKThe line is a cross star, and the reverse signal is also stronger.

Practical Application

2019year8month23Ridakang Agriculture002505In the previous one7.39%The big negative line, after a downward jump of the cross star, opened high and closed high on the same day, with the limit up and down. Over the next three days, the increase exceeded7%It is also a very dramatic case of a cross star reversal.

**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.