Exploring Downpour: Deciphering Key Patterns in Trading Charts
The downpour pattern is when the price or index first closes a big positive line or a medium positive line, indicating that the upward trend will continue. Then the price or index does not continue to rise, but a big negative line or a medium positive line that opens low and moves low. Yin line, and the closing price of the Yin line is lower than the opening price of the previous K line, at this time a downpour pattern is formed.
Key points of form:
1. The downpour pattern consists of two K lines, one positive and one negative, and the closing price of the negative line is lower than the opening price of the previous K line;
2. The more the negative real body of the downpour pattern is lower than the positive real body, the stronger the signal indicating a peak and turning trend;
Operation strategy:
After a sharp rise, a downpour pattern appears, indicating that the power of many parties has been exhausted. At this time, you should clear your positions in time and wait and see; in a high rebound market, if a downpour pattern appears, you should also exit in time; the downpour pattern is a bearish signal for the market outlook. strong.
