The inverted hammer shape at the top of the hammer line means that the upward attack is blocked, so it is easy to become the head; Appearing at the bottom represents a tentative upswing of bulls, which is a tentative behavior. The purpose is to test the degree of chip locking. Once the main force locks the chips, it is possible to launch an upside market, and the bottom has been established. The continuous downward trend caused the opening price of the day to fall with a gap, and the rebound of the day failed to close, forming a long shadow line. The key to the success of this form is the opening of the next day. If the opening price of the next day is higher than the inverted hammer entity, then the potential trend reversal will cause panic in the bear market, thus supporting the further rise of the price, which is a signal of price reversal.
Lines similar to hammers and hammers are K-lines formed according to the nature of trends. The hammer line at the falling end is the bottom signal, which appears in the falling relay (small space from the head, etc.). ), which can be regarded as falling resistance or short-term pumping signal, appears in relays (such as important pressure and volume concentration areas, etc.). ), the inverted hammer line has the significance of testing and gaining momentum, appearing in a round of sharp rise. The inverted hammer line can explain that the stock price is weak, the buying is seriously insufficient, and the stock price is about to peak.
Bian Xiao gave a detailed explanation of this problem. Bian Xiao made a detailed interpretation of this issue, hoping to help everyone. You can leave me a message in the comments section if you have any questions. You can comment with me more. If there is anything wrong, you can also interact with me more. If you like the author, you can also follow me. My praise is the greatest help to me. Thank you.