Detailed Explanation of Classic Falling K-line pattern
Classic Falling K-line pattern will appear repeatedly. If you master the meaning of these combinations, your trading will be greatly improved. When a falling K line combination appears, it tells you that the price will fall soon, to stop buying and start selling;
The classic Falling K-line combination that appears in an uptrend
In an uptrend, the Falling K-line combination indicates a reversal pattern. The product price has peaked and will fall in the short term. Long orders should exit in time, and investors can enter the market with long orders.
「Evening Star」It is composed of 3 K-line, the first one is the positive line, the second is the small line or the cross line, and the third is the negative line.
The evening star means that the rising market will end and usher in a falling market.
「Dark Cloud Cover」It is a combination of two k line, the negative line is more than half of the positive line body;
The dark cloud cover shows that the uptrend has encountered tenacious resistance, and the downtrend have regained their strength.
「Engulf」The engulfing pattern consists of two k line, first, there is a big or mid-positive line, and then a high-open big negative line appears. The closing price of the negative line is lower than the opening price of the previous positive line.
The engulfing pattern means that the rising market will end and usher in a falling market.
「Three Crows」It is a combination of three negative lines, indicating that the short side is starting to counterattack.
When this signal appears at the high point of an uptrend, the price may peak and fall back.
「Flat Top」It appears in an uptrend, consisting of 3 or more K lines, and the highest price is almost at the same price, which is a kind of peak signal.
Flat tops do not appear often, but the accuracy is high.
A classic Falling K-line combination that appears in a downtrend
In a downtrend, the falling k line combination indicates that the trend continues and the product price will continue to fall;
「Down Three」It appears in an downtrend, three small positive lines appeared after the big negative line, followed by another big negative line.
It shows that the short side has encountered resistance, but the rebound is not large for many consecutive days, and the market outlook will continue to decline.