(1) The second K-line should be higher than the highest price of the first K-line, but the closing price should drop sharply, and go deep into less than half of the physical part of the first K-line, otherwise the analysis is of little significance. The more the second K-line entity enters the first K-line entity, the more likely it is that the market will peak.

(2) The second K-line turned down after breaking through the obvious resistance level at the opening stage, indicating that the bulls were weak and the general trend peaked obviously.

(3) The initial turnover of the second K-line is also an important indicator. The greater the trading volume, the more potential investors, and the greater the possibility of market turning.