KTwilight Star of Line Combination

What is the Twilight Star?


The moral of the Twilight Star is that the stock price is about to decline, which is a clear selling signal.


It consists of threeKLine composition: On the first day, the stock price continues to rise and close out of the mid or high positive line, leading to a positive outlook in the future. On the second day, the stock price rises and falls back, forming a cross like star with an upward shadowKThe third sky continued to suppress the line and closed a negative line, indicating that the upward momentum of the stock price had begun to exhaust, and the downward reversal of the stock price was in sight, which was a clear signal of reaching its peak, as if it was about to enter darkness after dusk.


Why sell with Twilight Star?


Because the first positive line is to carry on the previous upward trend, with strong buying and a positive outlook in the future, the second rising and falling star line indicates that buying has been sluggish, and the possibility of a change in market is increasing. The longer the upper shadow line, the higher the reliability. The third negative line indicates that the nature of the market has changed, with the bears winning and the decline starting.


How can we sell with Twilight Star?


1The more deeply the Yin line entity penetrates into the Yang line entity, the stronger its potential signal effect.
2First rootKThe smaller the transaction volume corresponding to the line, the third oneKThe larger the transaction volume corresponding to the line, the more reliable its signal is.

3Second rootKWhen a line is a negative line, it has a stronger turning effect than a positive line.

4、 The turning signal of the Twilight Cross is more reliable than that of the Twilight Star.

5The dusk star is a common signal of peak and fall, and its signal significance is relatively obvious. As soon as investors see this form, they should consider selling their stocks.

6We investors can choose to sell on the day when the third negative line of the Twilight Star forms. If there is no selling on that day, we can choose to leave the market the next day.


Practical Cases of Selling Twilight Star

As shown in the above figure, the stock formed a twilight star pattern in the top area of the stage, accompanied by large trading volume, indicating severe bearish pressure and weak upward momentum from multiple parties, indicating that the stock price is about to turn downward, and there will be a significant decline in the future.