Three basic K-line patterns you must know
K line was invented by Japan. It was originally used to calculate the price of rice market. Later, it was gradually used in the stock market. K line is composed of Yin line and Yang line. In the market, the strength of the market can't be seen in a day or a K-line, so the combination form of K-line is needed as a reference. There are many K-line combination forms in the market, and each form represents the different market trend and the main capital trend. The following is a few basic and more important K-line shape combination.
The combination form of dawn star refers to the trend after a round of decline, the market volume can start to shrink. It is composed of three K lines. The first one is a negative line entity, but the lower shadow line is closed; the second is cross star or small Yin and small Yang, but does not break the first shadow line; the third is a large-scale positive line, and the closing price of breaking through the first positive line is the best. This is a signal that the market is going to bottom out and rebound, and investors can focus on buying.
Twilight star assemblage. He is contrary to the dawn star, the first is the upper shadow line Yang line, the second one is above the upper shadow line, and the third one falls below the opening price of the first one. It is a sign that the market is beginning to turn down. Investors should operate cautiously and avoid risks.
The combination of three red minions appears in the middle of the bottom of the market, which is composed of three positive lines, which can be used to pull up the market. It means that the market will start to rebound. Investors can pay attention.
These three forms of investors can be used and skilled in practice, respectively represents the bottom of the rebound, the middle of the rebound, the top out of the classic combination.