If there is a cross in the upward trend, and there is an upward price gap between the cross and the previous entity; or a cross in the downward trend. And this crosshair formed a downward price gap with the previous entity, then this crosshair is called the cross star candle line (referred to as the cross star line). The appearance of the crosshairs constitutes a potential warning signal, indicating that the current trend of the market has been prone to change. The candle line after this cross should constitute a verification signal of a trend reversal. Specifically, in an upward trend, if a long black entity is followed by a cross star line, and its closing price falls deeply inside the white entity before the cross star line, then this The root black entity constitutes the verification signal of the reversal process at the top of the market. This form is called the cross twilight star form. The cross twilight star form is a special form of the conventional twilight star form. In the conventional twilight star form, the star line, the second candle line, has a smaller entity, but in the cross twilight star form, the star line is a cross. Because the cross twilight star form contains a crosshair, it has more important technical significance.
In an upward trend, the appearance of a crosshair often constitutes a warning signal that the top of the market is approaching. But one thing is very important, and it deserves attention: if after the Doji line, there is a white candle line that jumps upward, then the weak nature of this Doji line no longer holds.
In a downward trend, if a black entity is followed by a cross star line, the third candle line is a strong white candle line, and its closing price significantly penetrates upwards into the first black entity Inside, then, the bottom reversal signal is verified by the third candle line. This three-candle line pattern is called the cross-star pattern. This type of star shape can constitute a meaningful market bottom process. In a downward trend, if a black candle line appears after the ten-day star line, and the black candle line jumps down below the cross star line, then the potential bullish significance of this cross line is disintegrating Too. This is why we must wait for the verification signal of one or two time units after the crosshair appears.
If there is a cross-line that jumps upwards in the market (that is, there is no place for the lower shadow of the cross star line and the upper shadow of the previous candle line), then it is followed by another A black candle line that gaps downward, and a price gap is also formed between the upper shadow line of this black candle line and the lower shadow line of the cross star line, then this cross display line constitutes a major top Reverse the signal. This form is called the abandoned top form. This form is very rare!
In the bottom reversal pattern corresponding to the above pattern, the reason is the same, but in the opposite direction. Specifically, in the downward trend, if a price gap occurs before and after a cross line (including the upper and lower shadow lines of the candle line also do not touch each other), then this cross line constitutes a major Bottom pattern. People call this form the bottom shape of abandoned infants (as shown in Figure 5.16). This form is also extremely rare! The abandoned baby form is similar to the western island-shaped top shape or island-shaped bottom shape, but the isolated island should also be a cross.