What are the bottom reversal patterns? Top 5 Reversal Patterns at Stock Bottoms.
1. Flat bottom
A flat bottom occurs on the downside and consists of two or more lines whose lows are almost at the same level. At a flat bottom, the more times the stock price is tested for support, and the larger the trading volume, the stronger the support and the stronger the reversal.
2. Two yang and one yin
Two Yangs and one Yin are both rising relays and bottom reversals.
There are 3 main points:
1: It is a combination of three lines;
2: On the first day, a large and medium positive line is drawn, on the second day, a negative line with the same entity as the first day is drawn down, and a large and medium positive line is drawn on the third day to realize the technical reverse package;
3: There are technical deformations in the two yang clips and one yin, and the strengths are not the same.
3. Friends’ counterattack, the dawn of dawn, the rising sun
The counterattack of friends, the dawn of dawn, and the rising sun are similar in form, so they are put together. The three reversed and improved one by one. After the continuous decline, be sure to pay attention.
A friend’s counterattack consists of two lines, one yin and one yang: first a large and medium Yin line is closed, and then a large and medium Yang line that gaps and opens lower, and the closing prices of these two lines are the same or close to each other.
The early appearance of dawn is also composed of two lines, one yin and one yang: it first closes out as a big yin line, then gaps and opens lower, and finally closes out a big yang line, and the closing price crosses the middle of the black body of the previous day.
The rising sun is also composed of two lines, one yin and one yang: first, a large and medium yin line is closed, and then a large and medium yang line that opens higher and moves higher, and the closing price of the yang line is higher than the opening price of the previous yin line.
A morning star is a classic bottom reversal.
The “morning star” indicates that the night is about to pass and the sun is coming. The morning star pattern heralds the end of a downtrend in the stock market and is a typical bottom reversal pattern.
(1) The trend of the morning star means the end of the falling market, and the market begins to bottom out and rebound, so the first line must be a negative line to continue the previous trend, and the third line must be a positive line, indicating that the rising market has begun, and the middle line must be a positive line. The color of that one does not matter;
(2) Theoretically speaking, the second K line of Venus should be a gap and open low. Such Venus is the most standard and provides the strongest bottoming signal, and the continuation of the rising market may last for a long time;
(3) If the K line in the middle is a doji, that is, the opening price of the day is equal to the closing price, the bottom signal is very obvious.
The Yin line on the left represents that the market is running in the original downtrend, and the bears have the advantage;
The middle star line indicates that the strength of the original trend bears has weakened, and the bulls and bears are evenly matched;
The Yang line on the right represents that the many parties have launched a counterattack and have seized the dominance.
Since the right Yang Xian engulfed the entity of the left Yin Xian, it caused a great psychological blow to the investors who were sold out by the left Yin Xian. The disappointment of stepping into the air made their psychology extremely unbalanced. Gainers, coupled with short-term chasing highs, the market has formed a consistent bullish pattern, and the trend has reversed! Buying points for the morning star pattern:
(1) In the form of a morning star, the doji is mostly a doji with a long lower shadow, of which the sun is the best and has higher stability;
(2) The morning star pattern, if the three-day pattern is a small island reversal pattern, the pattern is strong, and you can follow up boldly;
(3) In the form of a morning star, the trading volume must show a form of decreasing volume and increasing volume, and the long yin must shrink in volume. The doji mainly focuses on the scaling of the volume and energy of the time-sharing chart of the day, and the big Yang line must increase the volume;
(4) In the form of a morning star, when the big sun is pulled out, the MACD indicator must show a low golden fork;
(5) In the form of a morning star, the cross star can be both yin and yang, and there are no rigid requirements.
5. Single hammer head line
3 major features:
1: Appears in the downward direction, the best after the downward direction;
2: The positive line or the negative line is very small, generally there is no upper shadow line, but the lower shadow line is very long;
3: The bigger the ratio between the entity and the lower shadow line, the more valuable it is for reference. If the hammer head and the morning star appear at the same time, the bottom will be more reliable.