The K-line pattern of Sanlianyang at the bottom is also called "Red Three Soldiers", which is a strong bullish signal that the stock price reverses from the downtrend. Before the emergence of the K-line form of the Red Three Soldiers, the stock price will definitely fall for a long time. Before the stock price stabilizes and rises, Hong Sanbing will send a good signal to open a position, which investors can use as a basis for buying stocks.
Before the formation of the K-line form of the Red Three Soldiers, the stock price was in a long-term negative decline process. At the end of the bear market, many forces gradually exerted themselves and the stock price began to slowly pick up. The K-line form of the Red Three Soldiers was formed in the process of multi-party counterattack. When the K-line form of the Red Three Soldiers is formed, the corresponding trading volume does not need to be too large, just a little heavy. The reason is that the popularity of the stock price has not gathered in the early stage of the rebound, and every rise of the stock price is only to confirm the rebound trend. However, the K-line pattern of the encirclement of red soldiers further clarified the bull market to some extent, and investors can buy stocks at this time. What can better reflect the significance of the reversal of the Red Three Soldiers is that the stock price effectively broke through the medium-term moving average in the process of rising, and the corresponding trading volume and increase were relatively large, which was a significant signal of the stock price rise.
When confirming the K-line form of the Red Three Soldiers, investors need to confirm at least the following aspects.
The downward trend before 1.
The previous downward trend is to accumulate energy for the further rise of the stock price in the future, and it is also one of the prerequisites for the emergence of an effective K-line pattern in the Red Army. Investors look for stocks that have fallen sharply in the previous period and buy stocks after the emergence of the K-line form of the Red Three Soldiers, which has a greater probability of profit.
2. The stock price has started to adjust.
The downward trend of the bear market has ended, and the stock price has successfully entered the rising market, which is one of the conditions for the formation of the Red Three Soldiers. When the stock price bottomed out, the upward trend was not obvious, but the K-shape of the Red Three Soldiers delineated the bull market. In the adjustment of the market, although the stock price has not fundamentally got rid of the downward trend, the short-term moving average has been effectively broken, and the red three soldiers can reconfirm the rising process after breaking through the medium-term moving average.
3. Thick line with three positive lines
Needless to say, the K-line pattern of the Red Three Soldiers is a bullish pattern composed of three positive lines with rising volume, which is one of the signals for investors to do more. The increase of the Red Three Soldiers does not need to be too big. As long as the size of the Zhongyang line is enough, the volume of transactions only needs to be doubled or tripled to form the shape of the Red Three Soldiers.
4. Successfully broke through the 30-day moving average.
Effectively breaking through the 30-day moving average is a sign that the stock price will further strengthen. When the K-line form of the Red Army is formed, the stock price will inevitably break through the 30-day moving average, so the upward trend is certain.