Can the K-line be pregnant?

When you see two candlestices on the stock chart like a pregnant woman, you should be aware that it may be a sign that the trend is about to reverse.

This article will introduce a common double candlestick form - maternal form (Harami Pattern).

What is the pregnancy line morphology?

Harami Pattern is a reversal pattern consisting of two K-lines.

The word Harami means “pregnant” in Japanese.

The two candlestick in the pattern are opposite, the first one has a longer solid, the second one should be shorter, and the entity of the previous candlestick must wrap around the last one.

Graphically, the latter candlestick is like the fetus in the bosom of the previous one, so it is described as “pregnant rokko line”.

According to the location and color order of the K-line appears, the form of pregnancy line can be divided intoBullish pregnancy line (first yin and then yang) and bearish pregnancy line (first and then yin).

How is the gestational form formed?

The pregnancy line is a reversal pattern that usually appears in a pronounced trend that has already formed.

When the pregnancy line pattern appears at the bottom of a bearish line, it is a potential bullish signal, which is calledBullish Pregnancy Line.

The first K-line of this form is the Day-yin line, indicating that the market continues its previous bearish behavior, with a clear upper hand leading the share price to continue to fall.

However, the bulls began to intervene on the next day, and the share price moved higher and finally closed below the opening price of the previous day, forming a small sunline.

This is a signal that the market's headwinds are starting to fail, and the multivesforce is strengthening. Predicting the approaching end of bearish activity is likely to result in a bearish pattern.

In contrast, when the pregnancy line pattern appears at the top of the bullish movement, it is a potential bearish signal, hence calledBearish Pregnancy Line.

The first K-line of this form is the Sun line, indicating that the market continues its previous bullish behavior, with the majority holding the share price higher.

However, the stock price went lower the next day, and the closing price was above the opening price of the previous day, forming a small negative line.

This is a signal that the market has started to fail, and the strength of the void has strengthened. As bullish sentiment nears its end, it is likely to be empty talk.

In any case, it is characterized by the appearance of the second K-line, which indicates that the previous trend momentum is weakening and the possibility of a trend reversal.

But whether the trend reversal really occurs, it needs to be observed further with other technical indicators.

How to identify pregnancy line morphology?

In actual combat, the identification of gestational form can be divided into two cases of bullish pregnancy line and bearish gestine.

When identifying a bullish pregnancy line, you can follow these steps:

1. Identify a downtrend: First, identify the upfront trend. There needs to be a clear downtrend before the bullish pregnancy line appears. This means that the price continues to lower over a period of time.

2. Find Bullish Pregnancy Lines: Secondly, observe the K-line trend of the stock price. Find a solid long yin, followed by a shorter positive for the solid. The key to identifying this pattern is that the entity of the first candlestick must cover the second one. There is no upper and lower shadow lines does not affect.

3. Confirmation Signal: Once the candlestick pattern is found, the trend is not guaranteed to reverse, so a confirmation signal is required. In general, you can refer to the price movement of the third bar bar. If the third candlestick is a rising positive, the trend may start to reverse.

In the identificationBearish Pregnancy LineWhen the steps are similar:

1. Identify uptrend: Identify upfront trends first. There needs to be a clear uptrend before the bearish pregnancy line appears. This means that the price continues to rise over a period of time.

2. Find the Bearish Pregnancy Line: Find a solid long positive, followed by a shorter one of the solid's yin. Again, the key to identifying this pattern is that the entity of the first candlestick must cover the second candlestick entity. There is no upper and lower shadow lines does not affect.

3. Confirmation Signal: Confirm the reversal signal of the pattern and refer to the price trend of the third K-line. If the third candlestick is a falling yin, the trend may start to reverse.

case analysis

Below, we take the bullish gestational line that appears on the day chart of Adobe (ADBE).

On the chart, you can see that the stock price has experienced a clear wave of declines, indicating strong bearish sentiment.

At the bottom of the downtrend, bullish gestational lines appeared. The first K-line is the long yin line, and the second one is the short sunny line. The previous solid of the bar envelops the solid of the next candlestick. The appearance of this pattern indicates that the downtrend may reverse.

To confirm this reversal signal, you can refer to the price movement of the third bar bar. As you can see from the chart, the third candlestick is a rising sun, confirming that the price may reverse the bottom.

After that, the price trend reversed and the stock price ushered in a wave of rally.

summed

Overall, the pregnancy line pattern is a common reversal pattern that usually appears at the top or bottom of the market.

The bullish pregnancy pattern appears after a downtrend and is a bullish signal; on the contrary, bearish appears after an uptrend and is a bearish signal.

In actual combat, candlestick patterns should be combined with other technical analysis tools to better assist trading decisions.