In the candlestick technique, there are some longer-term top reversal patterns and bottom reversal patterns, including three mountain patterns, three river patterns, three top patterns, inverted three bottom patterns, dome patterns, and pan patterns (or In other words, the round bottom shape), as well as the tower-shaped top and tower-shaped bottom shape, are similar to the Western triple-top shape, and Japan also has the so-called Sanshan top shape. It is generally believed that this pattern constitutes a major top reversal process. If the market has fallen from the same high price three times in succession, or if the market has made three attempts to a certain high price upward, but all of them have failed, then a top of three mountains has formed. At the most distant point of the last mountain of the top of the three mountains pattern, there should also be some bearish candlestick indicator (for example, a cross, or a dark cloud cover pattern, etc.) to confirm the top pattern of the three mountains.
In the top form of Sanshan, if the peak in the middle is higher than the peaks on both sides, it forms a special form of Sanshan, called the top form of the three statues (as shown in Figure 6.45). The reason for adopting this name is that in the main hall of a Buddhist temple, Shakyamuni is enshrined in the middle. His statue is the tallest and his disciples are on both sides. Their statues are relatively small. This form is quite similar to this group of Buddha statues. This form corresponds perfectly to the head and shoulders form. However, although the three top shapes and head and shoulder shapes are equivalent technical signals, the history of the Japanese applying the three forms theory is more than 100 years earlier than the Americans applying the head and shoulder shapes (as far as we know, in the United States, The earliest mention of the shape of the head and shoulders was Richard Chabac, in the 1930s. Friends familiar with Edward and McGee ’s book “Technical Analysis of Stock Market Trends” know that many of the material in this book is based on Shabaq ’s work is based. Xia ’s is Edward ’s father-in-law) Interestingly, Western market observers and Eastern technical analysis pioneers share the same path in this price pattern. Surrounding the entire planet, the market psychology is common. To borrow a Japanese motto to describe, “The bird’s cry is the same everywhere.”