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    K-line morphological analysis of the peculiar three riverbeds

    Confirmation method of the peculiar three riverbed shape:

    1. The first candlestick in the peculiar three river bed pattern is a solid long black candlestick line, which is mainly a continuation of the price fluctuation trend of the previous trading day;

    2. The pattern of the candlestick on the second day is a hammer head or a mother-child pattern.

    3. The next day, the lower shadow of the candle is longer, and the price is refreshed to a new low.

    4. On the third day, the market opens at a lower price and the opening price is lower than the lower limit of the transaction price of the exchange rate the next day, and the closing price at the close is also relatively high, but not higher than the closing price of the next day.

    The market significance of the peculiar three-river bed pattern:

    The peculiar tri-riverbed pattern in the K-line pattern usually occurs after a period of falling prices in the market, which is a more obvious buying signal. After a relatively long decline in the market, this trend is reinforced by the black candlestick chart that follows. On the second day, the market opened at a higher price, but the power of the bears in the market prevailed, causing the exchange rate to fall rapidly, but at the end of the trading day, multiple parties began to exert force, causing the price to start rising. On the third day, although there are still a lot of short forces in the market, at this time, the bulls have clearly occupied a dominant position. This usually represents a change in the exchange rate trend. More reliable investors can continue to observe the fluctuations of the exchange rate on the fourth day. If it rises, the reversal can be confirmed.

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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.