What Is an Inversion Sprain?

The anti-transformation k-line is when the stock price reaches this position and starts to reverse upwards, or if the k-line pattern appears in a certain pattern, the stock price will reverse the upward k-line pattern.

Anti-transformation k-line

The anti-transformation k-line contains two modes, stop-loss and

The reason for the anti-transformation k-line is that the object must be reversed, and the k-line occurs only at a critical time and a critical position.

Price patterns include two types ^[1] , namely, reversal patterns and continuous patterns. It can be understood literally that the reversal pattern indicates that the market trend is positive

K-line inversion

An important turning point is taking place; and a continuous pattern means that the market trend will continue. At present, it may only be a temporary break, so that the overbought or oversold phenomenon in the previous stock price trend can be appropriately restored. Here we first talk about the reversal pattern, mainly including head and shoulders bottom (top), triple bottom (top), double bottom (top), V-shaped reversal and arc bottom (top). But before examining these reversal patterns in detail, let's take a look at some of the basic elements necessary for reversal patterns.

First, the market must have a certain trend in advance, which is the premise of all reversal patterns. Some of the trends referred to here are only rising or falling. As for the sideways consolidation, many market analysts summarize it as "no trend." According to this understanding, since there is no trend in advance, it is impossible to talk about the problem of non-reversal.

Secondly, the first signal that the current trend is about to be reversed, usually the most important trend line is effectively broken. But it must be clear that even if the main trend line is broken, it only means that the original trend is changing, and it does not mean that the trend must be reversed. It may change from the original upward or downward trend to a horizontal consolidation. We also said that the current market may form a "teapot" type finishing, rather than a V-shaped reversal.

Third, the greater the volume, the greater the reliability when breaking up. Volume often plays a key role when major resistance levels are breached, indicating that most investors' views are changing. However, sometimes favorable policies can also play a decisive role. The "5.19" market in 1999 is a good example.

Fourth, the larger the size of the pattern, the greater the market volatility when the reversal is formed. The size of the pattern is distinguished from the amplitude and time of price fluctuations. For example, from the end of April to the end of July 2012, the two markets exited the arc top pattern. After the downward breakthrough, the market fell sharply. Both the magnitude of the decline and the duration of the decline are large-scale.