Hammerhead line refers to a k-line that has no upper shadow line or a very short upper shadow line, but a very long lower shadow line, but a very small entity. Its k-line entity can be a female line or a male line, similar to the word "T".
The hammer head line is characterized by the following three points:
1. The entity is very small, and the length of the bottom hatch is greater than or equal to twice of the entity
2. The longer the downward shadow line is, the more likely the stock price is to rise if it is at a low level. If it is at a high level, it is more likely to decline.
3. There are two types of hammerhead lines: the positive line and the negative line. The rise and fall of the hammerhead line have the same meaning, but generally speaking, the low positive line indicates a slightly higher possibility of rise, and the high negative line indicates a slightly higher possibility of decline.
When investors encounter a hammerhead line, it is recommended to take the following actions:
1. After a sharp decline, there is a bullish signal, which can be referred to as buying,
2. After a sharp rise, there is a bearish signal, which can be referred to as selling
3. Appears on the way up or down, with relatively small reference significance.
The inverted head line refers to a k-line without a lower shadow line or a short lower shadow line, but with a long upper shadow line but a small entity. The k-line entity can be either a male line or a female line, similar to the inverted "T" character.
The inverted head line is characterized by the following three points:
1. The entity is very small, and the length of the upper hatch is greater than or equal to twice of the entity.
2. The longer the upper shadow line is, the more likely the stock price is to rise if it is low, and the more likely the stock price is to fall if it is high.
3. There are also two kinds of inverted hammerhead lines: the positive inverted hammerhead line and the negative inverted hammerhead line. The rise and fall of the inverted hammerhead line have the same meaning, but generally speaking, the lower positive inverted hammerhead line indicates a slightly higher possibility of rising, and the higher negative inverted hammerhead line indicates a slightly higher possibility of falling.
When investors encounter a headwind line, the following operation methods are recommended:
1. When there is a bullish signal after a sharp decline, you can refer to buying.
2. After a sharp rise, there is a bearish signal, which can be referred to as selling.
3. Appears on the way up or down, which is of little reference significance.
