In the market, charts are one of the important tools for investors to conduct technical analysis. By observing the pattern, investors can judge the trend of the market and the future movement. However,The appearance of some ** patterns often indicates that the stock price is about to **, and this article will introduce the 9 patterns of **high probability** and their market implications.
1. Shooting Star
The Shooting Star is a ** pattern with a long upper shadow and a short body. Its appearance usually indicates that the market is under selling pressure at a high level, the bullish power has been exhausted, and the bearish power is gradually gaining the upper hand. The appearance of this pattern is often a sign that the stock price is about to **.
2. Hanging neckline
The neckline is a ** pattern with a long lower shadow and a short body. Its appearance usually indicates that there is buying in the market at a low level, but the selling pressure above is strong and the stock price is suppressed. The appearance of this pattern is also often a sign that the stock price is about to **.
3. Inverted hammer line
The inverted hammer is a ** pattern with a long lower shadow and a short body, similar to the hanging neckline. Its appearance usually indicates that the market is at a low level, but the upper pressure is higher and the strength is weaker. The appearance of this pattern also indicates that the stock price is about to **.
4. Dark clouds cover the top
The dark cloud cover is a yin-yang ** pattern, in which a longer yin candle completely covers the previous shorter yang candle. The appearance of this pattern usually indicates that the market has reversed at a high level, the bears are gradually gaining an advantage, and the stock price is about to **.
5. Pouring rain
The downpour is a combination pattern of two consecutive black candlesticks. The appearance of this pattern usually indicates that the market has a continuous ** at a high level, the bearish power has an absolute advantage, and the stock price ** trend has been formed.
6. Wear your head and feet
Piercing is a ** pattern with long upper and lower shadows, in which a longer black candle completely covers the previous longer white candle. The appearance of this pattern usually indicates that the market has reversed at a high level, the bears have an absolute advantage, and the stock price is about to be sharply **.
7. Morning Star
The Morning Star is a combination of three candlesticks, the first of which is a long black candlestick, the second is a doji or smaller body, and the third is a long white candlestick. Its appearance usually indicates that the market has reversed at a low level, the bullish forces are gradually gaining the upper hand, and the stock price is about to **. However, if the morning star appears in the trend, it may only be short-lived, and the stock price will continue afterwards.
8. Evening Star
The Evening Star is a combination of three candlesticks, the first of which is a long white candlestick, the second is a doji or smaller body, and the third is a long black candlestick. Its appearance usually indicates that the market has reversed at a high level, the bears are gradually gaining the upper hand, and the stock price is about to **.
9. Tombstone line
The tombstone line is a ** pattern similar to a shooting star, which usually occurs at the high or phased high of the stock price. Its appearance often indicates that the market is about to reverse, the bears are gradually gaining the upper hand, and the stock price is about to be sharply **.
The above is an introduction to the 9 patterns that must fall and their market implications. When these patterns appear on the ** chart, investors should remain vigilant and take corresponding risk control measures in time to avoid unnecessary losses. At the same time, technical analysis is not a one-size-fits-all tool, and investors need to consider other factors when making investment decisions.
In addition to the above 9 must-fall ** patterns, there are some other technical indicators and factors that can assist investors in judging the trend and risk of the market. For example, volume, moving level**, technical indicators, etc. can provide useful reference information. In addition, investors also need to pay attention to macroeconomic factors, company fundamentals, market sentiment and other factors to make more comprehensive and accurate investment decisions.
In the market, no method is infallible. Even the classical theories and methods in technical analysis have certain limitations. Therefore, investors should maintain a rational and cautious attitude when making investment decisions, and do not blindly follow the trend or rely too much on a single method or indicator. At the same time, investors also need to establish their own risk control system and investment strategy to reduce risks and obtain better investment returns.