What is Hammer Toe?

Inverted hammer head shape: If the upper shadow line is longer (usually more than 2 times the entity) without the lower shadow line or the short shadow line is short, the K line shape is like an inverted hammer head, so it is commonly called "inverted hammer head" .

Inverted hammer

Inverted hammer head shape: If the upper shadow line is longer (usually more than 2 times the entity) without the lower shadow line or the short shadow line is short, the K line shape is like an inverted hammer head, so it is commonly called "inverted hammer head" .
Chinese name
Inverted hammer
Foreign name
Inverted hammer
Meaning
The K-line looks like an inverted hammer
Meaning
Reflects the cautious attitude of market participants
When the main market or individual stocks rush higher, they decisively exit or lighten up, causing the stock index (price) to continue to fall, and will eventually leave an inverted hammer on the Japanese K-line. This trend generally reflects the cautious attitude of all parties involved in the market. If the real situation is that the main force is out of rallies, its essence is a kind of enticing behavior, and the market outlook will fall; if it is mainly to lighten up retail positions, it may be the winning of the chassis on the previous trading day and the previous high level The disk turned empty, and the stop loss was eliminated in an attempt to make up for the future low.
Regardless of whether it is the main force or retail investors, the trading psychology at this time reflects very cunning characteristics. Therefore, the proverb has the saying "inverted hammer, play tricks."
Attached below is the graphic of the inverted hammer for your reference to the 600118 Chinese satellite. The trend of the previous two days is shown in the following figure:
Generally speaking, when you walk out of the inverted hammer, it is bearish on the second day, and sometimes even a short-term peak. On the third day, as the stock saying says, the trend is more subtle, it may continue to fall, or it may return to the low Pull up after make up. 600118 opened and walked high on the 3rd day. It was mainly stimulated by the favorable launch of the Chang'e satellite. It is not necessarily related technically. I won't discuss it in depth here. You can collect typical figures like this and make a summary. In the future, I encountered the same graphics to achieve conditioned reflection. It is time to understand the situation in time. The low point on the second day depends on the situation of the disk.

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