Candle chart k-line form summary analysis and use
In this part of the series, we introduced a lot of candle line and candle chart patterns. The following will summarize the candle chart technology from the actual legend. In the following legend, (Figure 9.1, 9.2, 9.3), we have marked many candle lines and candle chart patterns with numbers. All these candlestick indicators have been discussed earlier, so how would you interpret these candlestick patterns? In the process of analyzing these charts, if you feel it is necessary, you may wish to refer to the candle chart terminology index at the end of this book, which includes a concise schematic diagram. This index also provides my views on various candlesticks and candlestick patterns, but the final decision should be made by you.
Please note that the following analysis is subjective. You may find that in some places I see this kind of candlestick indicator, but what you see may be another kind. In some places you found some kind of candlestick signal but I didn’t. In fact, all chart analysis techniques are no exception. The same market analyst starts from different experiences and often sees different technical scenes. There are no strict and specific rules, only general guidelines
For example, if the market forms a candle line similar to a hammer line, the length of its lower shadow line is only one and a half times the height of its entity, and it does not reach twice the ideal situation-even 3 times the actual The height of the body is required. In the eyes of a pure faction, this candle line will not be a hammer line at all and simply ignore it. Some people may close their existing short positions immediately after the candle line appears. Others may wait until the next day of the candle line to see how the market will evolve before acting on the camera.
Figure 9.1 reflects the following aspects:
1 This is a bullish inverted hammer line. The opening price of the next candle line is higher and a white candle line is formed, verifying the bullish signal of the hammer line.
2 This is a halt pattern, which means that the current upward market efforts are already in trouble.
3 The last candle line in the above pause pattern is still a hanging string, which adds a deeper and weaker color to the pattern.
4 The black candle line at serial number 4 confirms the signal of the above hanging line. The combination of 3 and 4 forms a flat top pattern and also forms a bearish engulfing pattern.
5 Here is another hanging wire.
6 This is a bullish engulfing pattern, and the latter candle line is still a strong white catching belt line. Both aspects mean that the rising market is coming
7 The above-mentioned upswing market has been developing until the appearance of this hanging line, which is almost an ideal hanging line. It has a very long lower shadow line, a small entity, almost no upper shadow line, and the price changes on the next day There is no upward movement, which verifies the bearish nature of this hanging wire.
8 This is an inverted hammer line, and the next day’s market verified its signal. This candle line is also a part of a star.
9 Starting from the 8-point inverted hammer line, the market experienced a round of three-day quotations, where it was suspended by this pregnancy line pattern.
10 This is a hammer thread, symbolizing that the bottom of the market may be coming.
11 There is a variant of a bullish piercing pattern, where the opening price on the second day should have been lower than the lowest price on the first day, but here it is just below the closing price on the first day. On the second candle line, the market started to rise, and its closing price clearly crossed upwards into the interior of the black candle line entity.
12 Here is another hanging line, but this hanging line is not verified the next day, because the market jumps out when the market opens
13 A bearish engulfing pattern appears here.
14 A classic piercing pattern is formed here. In this pattern, the next day is still a strong white catching belt line, and its closing price is at the highest point of the day. In addition, this line also successfully tested 11 lows.
15 The Doji pattern marks the end of the current rising market. This round of rising prices began at 14.
16 This is a pregnancy line pattern, which led to the end of the previous decline.
Figure 9.2 embodies the following aspects:
1 This is a flat-bottomed bottom shape, and there is also a white catching belt line.
2 Here is the dark cloud cover form
3 A window means that a blocking area will be formed here
4 A star form appears. This star form is unusual. The third candle line is not a long white entity. However, this candle line is still pushed upward to each white candle line Inside, on the other hand, the Benstar form is also a successful test of the previous week’s lows.
5 The uptrend starting from 4 is ended by a small flat top pattern here, which just stopped at the position of window 3.
6 This is an inverted hammer wire, which is verified by the next day. The rising market from this inverted hammer line pushed through the blocking level of window 3
7 This is a pregnancy line form, temporarily ending the previous trend
8 The previous day here was a large black candle line, but its weakness means that it has been dropped by a small entity the day after. These two lines form a pregnancy line pattern, which indicates that the previous market movement has Lost momentum (in this case, a downward trend)
9 This is a hammer line, which appears after the pregnancy line pattern 8, and further verify that the previous downward trend has ended.
10 This is a doji form, warning us that the top is coming.
11 This is a pregnancy line form, which constitutes another warning signal. This shows that the previous upward trend has come to an end.
12 Here is a dark cloud cover pattern, the price change process marked by the letters X, Y, Z forms a three-top pattern
13 a hammer wire
14 Pregnancy line form, as soon as this form appears, the market is short-circuited.
15 There are two windows here, and they should act as barriers.
16 An inverted hammer thread, and constitute a flat bottom shape.
17 The rising market triggered by the inverted hammer line meets the obstruction of the window
18 A pregnancy line pattern, which implies that the current downward trend may have ended.
19 This is a dark cloud cover form.
A series of top reversal patterns are shown in Figure 9.3
1 In mid-May, a pregnancy line appeared, which increased the possibility that the current upward trend could have ended.
2 June 1 is a tall white candle line, followed by a smaller white candle line, forming a pause.
3 A bearish engulfing pattern.
4 5 The front is a cross, and the back is a hanging line, of course not a healthy combination.
6 is also a hanging wire.
7 The pregnancy line pattern here shows that the market has changed from a previous rise to an indecisive turning point
8 A bearish engulfing pattern appeared immediately after the above pregnancy line pattern, which shows that the market’s hesitation was quickly knocked out by the seller. This example also illustrates another question, in this engulfing pattern Because the black candle line on the second day did not hit a new high, so according to Western technical analysis methods, this day is not a reversal day.However, in the candle chart technology, a very reversal signal is issued here.