Cross star is the basic type of K-line. The cross star is a K-line chart, with only upper and lower shadow lines and no entity. The opening price is the closing price, which means that the stock price is higher or lower than the opening price, but the closing price is equal to the opening price.

Specific application of cross star:

1, analyzed from the aspect of quantity and energy. After the cross star trend appears, whether the market can rise and evolve into a strong market with certain motivation is the decisive factor. Before and after the formation of the cross star, the amount of energy is maintained and amplified, and the cross star will evolve into a phased bottom shape; If the cross star trend is formed, the volume of transactions cannot be continuously increased, indicating that the incremental funds are mostly in a state of doubt and wait-and-see, and it is easy to form a downward relay pattern.

2. Analysis from the transaction intensive areas. The transaction intensive area is an important reference for the market trend, so as to judge the position of the cross star. The closer the cross star is to the core area of the transaction-intensive area, the easier it is to form a descending relay form; The farther the cross star is from the core area of the transaction-intensive area, the easier it is to form a phased bottom shape.

3. Analyze from market hotspots. If the hot spots tend to be concentrated, maintain a certain persistence and appeal, effectively form the focus characteristics of hot spots, make the intervention of incremental funds have a sense of direction, help gather market sentiment and funds, and make the market outlook develop healthily, then the cross star will inevitably develop in the direction of the bottom form of the stage. If the market hotspots are not concentrated and persistent, the hotspots show a multi-pronged offensive trend, which shows that the hotspots lack appeal and capital cohesion and cannot effectively stimulate and stabilize market sentiment. At this time, the hot spots will gradually spread in a large area, which will easily lead to the rapid exhaustion of limited long-term energy, so that the cross star will eventually evolve into a descending relay form.

4. Analyze market trends. If the stock index is in the trend of repeated shocks and bottoming out, most of the cross stars belong to the stage bottom form, and investors can participate appropriately. If the stock index is in the downward channel, most of the cross stars belong to the downward relay form, and investors cannot buy them easily.