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Five common negative signals on K-line
During a rising trend, the K-line pattern may send
out some signals to inform traders that the future
trend may reverse at the top. This is also a good
time for shorts to enter the market on highs.
1.bearish engulfing
Represents a bearish candlestick pattern consisting of a
small green real body and a red green real body, with the
latter fully encompassing the former.
If a hanging K-line pattern appears during a rising trend, it
means that after the opening of the day, the bulls continued
yesterday's trend, but were attacked by the bears at a high
level, causing the closing price to be slightly lower than the
opening price and leaving a long downward trend. hatch.
The length of the shadow line is 2-3 times that of the K-
line entity, and sometimes a shorter upper shadow line may
appear. The market outlook is likely to rise and fall, which is
a negative signal.
2.shooting star
Represents a bearish candlestick pattern consisting of
a small real body and a long upper shadow that
occurs at the top of an uptrend and heralds a reversal
and decline in stock prices.
If a shooting star K-line pattern appears in an upward
trend, it means that after the opening of the day, the bulls
continued yesterday's trend, causing the price to jump
short and open high (not necessarily a short jump), but the
high position was strongly attacked by the short side,
causing the price to jump. . The closing price is lower than
the opening price, leaving a long upper shadow. The length
of the shadow line is 2-3 times the length of the K-line
entity. Sometimes a shorter lower shadow will appear. The
probability of a rebound in the market outlook is high. If it
occurs at the top of an uptrend, it is a strong bearish signal.
3.Evening star
Represents a bearish candlestick pattern consisting of a small real body
and a long upper shadow that occurs at the top of an uptrend and heralds
a reversal and decline in stock prices.
The Evening Star consists of three K lines and usually
appears after an uptrend. The first is a strong green K line,
indicating that the multi-party momentum is relatively
strong in the short term; the second is a cross star or a
cross star after a gap and a high opening. The main axis
shows that the bullish momentum has slowed; the third is a
strong red K after the short gap and opened lower,
showing that the short side has regained dominance. The
market outlook is likely to peak and fall, which is a
negative signal.
4.Three Red Soldiers
Represents a bearish candlestick pattern consisting of three
large negative bars. The opening price of each negative line is
within the physical range of the previous negative line, and the
closing price is lower than the closing price of the previous
negative line.
Three Red Soldiers consists of 3 red K lines. The
closing price is lower than the previous trading
day, and the closing price of each day is at or
near the lowest point. For example, the K-line
pattern of the three red soldiers shows an
upward trend, which represents a strong short
counterattack signal. The market outlook is
likely to peak and fall, which is a negative signal.
5.bearish engulfing:
Represents a bearish candlestick pattern consisting of a red real body and a
green real body, with the latter completely encompassing the former. This
pattern shows the strength of the short position and indicates further decline
in the stock price.
It consists of the green K line with a shadow line the
previous day, and the red K line that opened high and
closed low afterwards. However, the real part of the red K
wraps the entire green K including its shadow. It means
that after the opening of the day, bulls continued
yesterday's trend, causing the price to jump short and
open higher. However, it was actively suppressed by the
bears at the high level, pushing the price sharply lower
until the closing, resulting in bearish engulfment. The
market outlook is likely to peak and fall back. If it appears
after a wave of upward trend, it is a strong bearish signal.
Four continuation or changing K-line
patterns
The following four K-line patterns
indicate that the market trend may
continue or may change. Traders need to
pay more attention when entering the
market.
1.Doji
Represents a K-line chart with only upper and lower shadow lines and
no entity. The opening price is the closing price, which means that in the
transaction, the stock price is higher or lower than the opening price,
but the closing price is equal to the opening price
Doji means that the opening price of the day's K-line is the
same as or close to the closing price. The longer the upper
and lower shadows, the more intense the long-short
competition, but the future trend is unknown. It may be a
continuation of a previous trend, or it may be a precursor to
a change in the market. If the cross star appears behind the
green K line, it means that the momentum of the bulls may
be exhausted and they will wait for more breakthroughs
before rising further. If the cross star appears behind the red
K line, it means that the short-term momentum may be
exhausted, and we are waiting for more factors to intervene
to confirm further downside.
2.spinning top
It represents a K-line chart with a small entity and long upper and
lower shadow lines. The opening and closing prices are close, which
means that the stock price fluctuated significantly during the
transaction, but finally closed at a level close to the opening price
K-lines with upper and lower shadows and smaller entities
are called spindles, which are more commonly encountered
when consolidating market conditions. The real part,
whether green or red, is not very important. It just
represents that the long and short kinetic energy has not
yet expressed its position. Neither side has a clear advantage,
and the current market situation is unknown. If a spinning
top forms in an upward trend, it means that the market's
bulls may have insufficient momentum and may be
counterattacked by bears. On the other hand, if a spinning
top forms during a downward trend, it means that the
short position in the market may have been exhausted, and
there is a greater chance that it will be reversed by the long
position.
3.Ascendant Three Methods
Represents a bullish candlestick pattern, which consists of three smaller
negative lines. The opening and closing prices of each negative line are
within the real body of the previous positive line, indicating that the
stock price continues to rise.
4.falling three methods
Represents a bearish candlestick pattern, which consists of three
smaller positive lines. The opening and closing prices of each
positive line are within the real body of the previous negative line,
indicating that the stock price will continue to fall.
The falling three method refers to the appearance of
a longer red K line in a downward trend, followed by
three shorter K lines (either Yin or Yang, generally
green K lines are the main ones), but the conditions
are three shorter K lines. Regardless of the entity or
shadow line, it must be within the trading range of
the first long red K line (including the shadow line).
Finally, a red K line appears, and the closing price is
lower than the closing price of the first red K line,
indicating the market outlook. Breakthrough, the
decline will continue
Summarize
The above-mentioned K-line patterns are only some of
them that are widely recognized and considered by
investors to have high predictive power. There are other
K-line patterns that are less popular and may have
different names. If it can be combined with other trading
technical indicators and the entire trend pattern
judgment, the application of K-line can further
strengthen investors' trading strategies.

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Candlestick Chart Technical Strategy.pptx

  • 1.
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. Five common negative signals on K-line During a rising trend, the K-line pattern may send out some signals to inform traders that the future trend may reverse at the top. This is also a good time for shorts to enter the market on highs.
  • 13. 1.bearish engulfing Represents a bearish candlestick pattern consisting of a small green real body and a red green real body, with the latter fully encompassing the former.
  • 14. If a hanging K-line pattern appears during a rising trend, it means that after the opening of the day, the bulls continued yesterday's trend, but were attacked by the bears at a high level, causing the closing price to be slightly lower than the opening price and leaving a long downward trend. hatch. The length of the shadow line is 2-3 times that of the K- line entity, and sometimes a shorter upper shadow line may appear. The market outlook is likely to rise and fall, which is a negative signal.
  • 15. 2.shooting star Represents a bearish candlestick pattern consisting of a small real body and a long upper shadow that occurs at the top of an uptrend and heralds a reversal and decline in stock prices.
  • 16. If a shooting star K-line pattern appears in an upward trend, it means that after the opening of the day, the bulls continued yesterday's trend, causing the price to jump short and open high (not necessarily a short jump), but the high position was strongly attacked by the short side, causing the price to jump. . The closing price is lower than the opening price, leaving a long upper shadow. The length of the shadow line is 2-3 times the length of the K-line entity. Sometimes a shorter lower shadow will appear. The probability of a rebound in the market outlook is high. If it occurs at the top of an uptrend, it is a strong bearish signal.
  • 17. 3.Evening star Represents a bearish candlestick pattern consisting of a small real body and a long upper shadow that occurs at the top of an uptrend and heralds a reversal and decline in stock prices.
  • 18. The Evening Star consists of three K lines and usually appears after an uptrend. The first is a strong green K line, indicating that the multi-party momentum is relatively strong in the short term; the second is a cross star or a cross star after a gap and a high opening. The main axis shows that the bullish momentum has slowed; the third is a strong red K after the short gap and opened lower, showing that the short side has regained dominance. The market outlook is likely to peak and fall, which is a negative signal.
  • 19. 4.Three Red Soldiers Represents a bearish candlestick pattern consisting of three large negative bars. The opening price of each negative line is within the physical range of the previous negative line, and the closing price is lower than the closing price of the previous negative line.
  • 20. Three Red Soldiers consists of 3 red K lines. The closing price is lower than the previous trading day, and the closing price of each day is at or near the lowest point. For example, the K-line pattern of the three red soldiers shows an upward trend, which represents a strong short counterattack signal. The market outlook is likely to peak and fall, which is a negative signal.
  • 21. 5.bearish engulfing: Represents a bearish candlestick pattern consisting of a red real body and a green real body, with the latter completely encompassing the former. This pattern shows the strength of the short position and indicates further decline in the stock price.
  • 22. It consists of the green K line with a shadow line the previous day, and the red K line that opened high and closed low afterwards. However, the real part of the red K wraps the entire green K including its shadow. It means that after the opening of the day, bulls continued yesterday's trend, causing the price to jump short and open higher. However, it was actively suppressed by the bears at the high level, pushing the price sharply lower until the closing, resulting in bearish engulfment. The market outlook is likely to peak and fall back. If it appears after a wave of upward trend, it is a strong bearish signal.
  • 23. Four continuation or changing K-line patterns The following four K-line patterns indicate that the market trend may continue or may change. Traders need to pay more attention when entering the market.
  • 24. 1.Doji Represents a K-line chart with only upper and lower shadow lines and no entity. The opening price is the closing price, which means that in the transaction, the stock price is higher or lower than the opening price, but the closing price is equal to the opening price
  • 25. Doji means that the opening price of the day's K-line is the same as or close to the closing price. The longer the upper and lower shadows, the more intense the long-short competition, but the future trend is unknown. It may be a continuation of a previous trend, or it may be a precursor to a change in the market. If the cross star appears behind the green K line, it means that the momentum of the bulls may be exhausted and they will wait for more breakthroughs before rising further. If the cross star appears behind the red K line, it means that the short-term momentum may be exhausted, and we are waiting for more factors to intervene to confirm further downside.
  • 26. 2.spinning top It represents a K-line chart with a small entity and long upper and lower shadow lines. The opening and closing prices are close, which means that the stock price fluctuated significantly during the transaction, but finally closed at a level close to the opening price
  • 27. K-lines with upper and lower shadows and smaller entities are called spindles, which are more commonly encountered when consolidating market conditions. The real part, whether green or red, is not very important. It just represents that the long and short kinetic energy has not yet expressed its position. Neither side has a clear advantage, and the current market situation is unknown. If a spinning top forms in an upward trend, it means that the market's bulls may have insufficient momentum and may be counterattacked by bears. On the other hand, if a spinning top forms during a downward trend, it means that the short position in the market may have been exhausted, and there is a greater chance that it will be reversed by the long position.
  • 28. 3.Ascendant Three Methods Represents a bullish candlestick pattern, which consists of three smaller negative lines. The opening and closing prices of each negative line are within the real body of the previous positive line, indicating that the stock price continues to rise.
  • 29. 4.falling three methods Represents a bearish candlestick pattern, which consists of three smaller positive lines. The opening and closing prices of each positive line are within the real body of the previous negative line, indicating that the stock price will continue to fall.
  • 30. The falling three method refers to the appearance of a longer red K line in a downward trend, followed by three shorter K lines (either Yin or Yang, generally green K lines are the main ones), but the conditions are three shorter K lines. Regardless of the entity or shadow line, it must be within the trading range of the first long red K line (including the shadow line). Finally, a red K line appears, and the closing price is lower than the closing price of the first red K line, indicating the market outlook. Breakthrough, the decline will continue
  • 31. Summarize The above-mentioned K-line patterns are only some of them that are widely recognized and considered by investors to have high predictive power. There are other K-line patterns that are less popular and may have different names. If it can be combined with other trading technical indicators and the entire trend pattern judgment, the application of K-line can further strengthen investors' trading strategies.