How To Identify "Stars" On The Way Up

A single K-line with small entities often has a shadow line up and down. It is called "Star" in K-line analysis. It indicates that the forces of both sides are more balanced.

For example, rising two stars and twilight stars are two opposite signals to the K-line analysis, and they are made up of three k-lines.

But if you do not look at the last K-line, only look at the arrangement of their first two k-lines, they are almost exactly the same from the shape of the K-line. If a stock's daily K line just goes to this position, what should investors do? If there is almost no conclusion from the K-line analysis, however, the short-term investors holding the stock must decide whether to continue to hold or sell evasion risk at this time, which is the "Star" we want to talk about.

Look at the stock of Ji'nan Qingqi (600698), a star in the sky rose on the way up in May 23rd last week.

On the same day, I listed it as a risk share, based on the volume of the star.

If the stock price trend is formed on that day, if there is no consideration from the perspective of volume, the most probable variables in the future market are three:

One is parallel movement, and continues to form stars. From the K-line combination, there are three ways to rise or two stars to rise. The second is to break through from the K-line combination, forming the trend of Shanyang and so on from the K-line combination. The third one is to reverse the downward line and form a trend similar to that of the Twilight star on the short line.

But if we introduce the concept of volume to judge, we will find that whether it is rising three or rising two stars or passing through Shanyang, the demand for Changyang after the star is shrinking. Only in the confirmation condition of Twilight star, the star after Changyang is obviously heavy volume. From this perspective, the short term strength of the stock market is unlikely.

In this case, the K-line occurred on the way to Changyang after the rise, and the second trading day was a shock star.

Although the situation is very complicated in the specific trend of the stock price, all the criteria for confirming the stars are independent.

That is: if the star on the rising road appears on the first day after the breaking of the Changyang line, it is predicted that the star combination is required to be reduced in the combination of the rising market; and the combination of the predicted short term peaked demand is that the star is obviously peaked, and if it is a jump, the probability of peaking is greater.

So the conclusion is only one sentence. If there is a star on the way up, especially after a distinct Changyang, if the star is shrinking, the trend of stock price trend will continue to rise technically. If the star is clear enough, even a huge amount of jumping out of the sky is usually a sign of short term peaking.