The cross represents that the closing price and the opening price are the same or similar, and the special K-line shape without entity or entity is very small. Although the cross star is divided into yin and yang, the significance of actual combat is not much different, far less important than the position of the cross star itself. For example, the low-priced area that appears at the end of the continuous decline is called the "star of hope" and is the signal of bottoming out; Appearing in the high-priced area after continuous rise, it is called "late star", which is the signal of peaking and turning.

1. What is a cross star?

The opening price of a price or index in a period is the same as or close to the closing price, and it is a cross star, which appears as a tiny entity or no entity in form. The "cross star" line is very similar to the word "ten" in textbooks, but in practice, the appearance of "ten" is not equal to "cross star", and some entities are asymmetrical with the upper and lower shadow lines, which can all be used as cross stars. Please see the picture below:

Although there are so many forms, as long as you understand the basic logic, no matter how the cross changes, you can easily master it. Generally speaking, the K-line pattern is considered to be the result of mutual fighting between long and short sides to seize territory. The upper shadow line indicates that the bulls launched an attack, and the lower shadow line actually means that the bears launched an attack, but no matter which side attacked, they were eventually forced back to the initial position. So, what is the reason for the diversity of cross stars? Because of the attacks from both sides, we don't know how many meters the other side attacked, but we adopted a completely disorderly attack mode, but the result was neck and neck.

Second, what does the cross star represent in different situations and the corresponding operation?

1, up/down cross star

If you encounter a cross star during the ascent, you should be careful at this time. The cross star means close, but in the process of rising, the bullish advantage is obvious! Now all of a sudden, bulls and bears are evenly matched. It can be seen that the strength of many parties began to decline and the ability of the empty side began to improve. It is very likely that the trend will reverse and need to be sold, so be careful. If the reverse is still the case, if you encounter a cross star during the decline, it is recommended to buy.

2. High and low cross stars

The higher the rising height, the more times the cross star appears, indicating that the future market will reverse. It is easy to understand that the higher the bulls go, the closer they are to the short base camp, which is more likely to lead to the crit and decline of short positions, so the cross star appears at a high position and the selling probability is high. or vice versa, Dallas to the auditorium

3, heavy/shrinking cross star

Quantity can show the activity of trading, quantity can show that the engagement between long and short sides is more intense than usual, and shrinkage symbolizes that the two sides are already in a cold stage, so it is of little significance to learn from the reduction of cross stars, and it is the point we need to pay attention to that. However, the heavy cross star cannot be used alone, and it needs to be used in combination with the above 1 and 2 points. For example, the cross star with high turnover means that bulls send more strength to compete for empty territory, but this has not been realized. Therefore, in the future, the probability of bulls' further upswing success is reduced by at least half, which means that this is a stronger selling signal. or vice versa, Dallas to the auditorium

4. Yang/Yin Cross Star

In fact, whether the cross star is a positive line or a negative line is of little significance in reality. As for the cross star of Yin line or Yang line, the nature is that both sides of the long and short attacks are fruitless and equally divided. What is important is when there is a closing state, which may be a rising state or a falling state. The position may be at a high position or a low position, so there is no need to discuss the positive line and the negative line too much to avoid putting the cart before the horse.