KMorning Star of Line Combination

As the name suggests, "Morning Star" refers to the darkest hour before dawn when the sun has not yet risen. A bright star guides those who walk towards the bright night on the horizon, and the future is certainly promising.

Morning Star, also known as "Rising Star", "Dawn Star", "Morning Star", "Hope Star"， By three rootsKLine composition: During a decline in a price or index, a long negative line appears on a certain day. The second line is a small entity line (or cross star) that jumps downward, and the third line is a positive line. The closing price significantly penetrates into the interior of the first negative entity, forming a morning star. The morning star is considered a signal of bottom reversal and is a very good buying opportunity.

Key points of form
The first line must be a negative line, and the stock price continues to decline, resulting in a large negative line due to panic selling.
The second drop is not significant, and the physical part is relatively short, forming the main part of the star. The parts that make up a star can be either negative or positive.
The third line must be a positive line to indicate the beginning of an upward trend, when the third lineKThe closing price of the line exceeds the first oneKWhen more than half of the line entity is present, the bottoming reversal signal of the Morning Star is stronger.
Trading volume: With a positive line, the best trading volume is two days ahead.

Operational strategy
The morning star (rising star) pattern belongs to the bottom reversal pattern, indicating an increase in prices. Once the pattern is confirmed, it can be actively bullish.
Buying signal one:Before the closing of the positive line, it is a buying signal for bottom positions.
Buying Signal 2 and Stop Loss:If there is a pullback on the morning star the next day, and it does not exceed half of the positive line entity, it is a signal for adding positions; If it exceeds, the bottom warehouse stop loss signal will be issued.
Application rules
Three rootsKThe line psychologically constitutes a complete transformation process: bearish psychology, long short balance, and bullish psychology. Therefore, this combination form has a high effectiveness in turning and stopping bearish trading.
❶ For the stocks of Morning Star, everyone should intervene in batches at low prices and not hesitate to avoid falling short in the future.
❷ The main reason for the formation of Morning Star is that the main force deliberately suppressed it in the tail market using various factors in order to attract funds again the next day.
The most important and crucial thing is the location where the signal appears: the morning starKThe line form generally appears at the end of a downward trend and is a strong trend reversal signal. Prudent investors can combine trading volume and other indicators to analyze and obtain corresponding investment references.
Due to the low popularity at the end of the market decline, a significant suppression by the bears will form inertia and low opening. However, after jumping short and opening low, multiple parties bought to prevent the bears from continuing to suppress. On the third day, multiple parties further bought to pull out the Changyang market, proving that the buyers have gradually controlled the market.
Case analysis
Case 1: Jingxing Paper Industry（002067）

From the figure, it can be seen that Jingxing Paper Industry（002067）At2017year6month23Recently, the stock price has dropped from a high point, and there has been a "morning star" trend in the decline. Once the stock price shows the pattern shown in the figure during the decline process, it can be preliminarily confirmed that the "Morning Star" bottoming pattern.

Case 2: Zhangzi Island（002069）

The first line of the stock is the Great Yin Line, the second cross star, and the third Yang Line. The position where the Yang Line is collected above half of the first Yin Line is the standard form of the Morning Star. After the morning star was confirmed, the next day the pullback did not break half of the positive line, and every time I stepped back, I did not fall below this position. There is still a relatively good return.
Case 3: Blue Light Development（600466）

After the stock fell,2017year7month8The "Morning Star" appeared on the day, and the stock price continued to rise. The "Morning Star" had a correction the next day, but not more than half of the positive line entities. This is a great opportunity to increase positions and accurately grasp the buying time!
Case 4: Jiangquan Industrial（600212）

This stock is in the2017year5month24On the same day, a technical form that conforms to the "Morning Star" bottoming method emerged, coupled with a change in company control and suspension of trading, followed by a direct resumption of trading and limit up. Since then, the stock price has continued to rise, and is still in an upward channel.
Confirmation principles and precautions
❶ Morning Star has a relatively complete form, the third oneKThe line is a large positive line with a large increase in volume; The first root of the Morning StarKLine or secondKAfter setting a new low or historical low since the adjustment, the third lineKThe line must not innovate low.
❷ The morning star is a secondary bottom reversal signal, so once it appears, waiting for verification information from the next day becomes very important. Setting a stop loss position is a necessary choice for thisKIn terms of line form, the lowest price on the day when the morning star form appears is often a good stop loss level. Once the stock price falls below this level, it indicates a failure to resist the decline, and investors should stop loss and exit in a timely manner.
❸ WhenKAfter the morning star is received, it does not mean that the stock price is about to rise, but rather that the stock price has bottomed out or periodically bottomed out. Afterwards, it may rise, or it may rise again after trading. This requires patient shareholding, especially for those who hold onto it. At this point, it is important to have patient shareholding.
❹ If the middle of the morning starKThe line is not a small yang or a small yang, but a propeller, hammer head line, inverted hammer head line, etc. with a long shadow lineKLine, then the bottom signal is stronger.