Cryptocurrency dry goods: Air Force is strong - heavy rain
Today's content has some similarities with the dark cloud cover,
but it is necessary to distinguish the position difference between the Yin line and the Yang line.
The heavy rain is a large Yang line first closed in the rising process,
and then a low-opening large Yin line is closed,
and the closing price of the Yin line is lower than the opening price of the Yang line.
I. Technical characteristics of heavy rain:
1. Appear in the rising trend.
2. Consists of two K lines, one Yang and one Yin.
3. First, a large Yang line or a medium Yang line appears, followed by a large Yin line or a medium Yin line with a low opening and closing.
4. The closing price of the Yin line is lower than the opening price of the previous Yang line.
II. Technical meaning of heavy rain:
The heavy rain shows the process of sudden conversion of the power of both long and short sides within one day, and at the same time reflects the short-term trend reversal process defined by the Dow Theory. It is a relatively strong peak reversal signal, and the market outlook is bearish. When traders see this signal, they can reduce or clear their positions.
3. Practical logic:
1. Heavy rain can occur once or repeatedly. After a continuous rise, repeated heavy rain indicates that the seller market is very determined, and selling out is a top priority.
2. The operation of the currency price trend is the same as the law of nature, and there is inertia. Generally speaking, it is not easy to change inertia, and it takes time and space. But the heavy rain was completed the next day, indicating that the short side has accumulated far more power than the long side. When traders see the K-line pattern of heavy rain, reducing positions or leaving the market to wait and see is usually the best choice.
3. The more the negative line entity is lower than the positive line entity, the more reliable the turning signal of the heavy rain.
4. The peaking effect of heavy rain is stronger than that of dark clouds.
5. Heavy rain may also appear at the head or right shoulder of the turning pattern with reversal significance such as the head and shoulders top or the M top. At this time, you can reduce or clear your position in advance.
6. If the indicator appears at a low level, it cannot be called a heavy rain, and it is likely to be a signal to induce shorting.
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