K-line chart combination formula: fine observation appears on a flat bottom, tentative buying hands are not numb
In the process of falling prices, if there is a situation where the lowest price of the stock price is flat for two or more trading days, then there is a "flat bottom".
For ordinary investors, when encountering such a K-line combination, we should carefully observe and do not rush to decide to buy. If the price has already experienced a sharp decline, we can buy tentatively; if we see other bottoming signals, such as "morning star", bottom T-line, etc., then we can add positions.
Technical features
(1) It occurs during a sharp decline in prices.
(2) It is composed of at least two K-wires, with a common combination of 2 to 5 K-wires.
(3) The shapes of the several K-lines composed are not clearly defined, and can be solid male or female lines, or they can have upper and lower shadow lines.
(4) The lowest price of a K-line is the same as the lowest price of an adjacent K-line or one of the K-lines.
"Flat bottom" is a signal that the stock price has bottomed out and rebounded. After a major decline, it is a good buying point. If combined with other bottoming K-line combinations, the success rate of bottom fishing will be very high.
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.
