The weekly level repair pattern is an important basis for judging the medium-term trend changes in stock prices, and the common ones include the following types:
- Arc bottom: This is a relatively complex bottom pattern that usually appears during the transition from bear to bull markets on a weekly chart. Its shape resembles a dish or a bowl, and the bottoming process takes a longer time. During the formation, trading volume often changes in an arc shape, first gradually shrinking, and then gradually expanding as the stock price rises.
- Triple Bottom: Also known as "π bottom," it consists of three low points and two high points. The three low points are at similar prices, and the line connecting the two high points is the neckline. During the formation process, the two high points correspond to significant trading volume, while the three low points correspond to extremely reduced trading volume. When the stock price breaks out with increased volume and rises through the neckline, the pattern is completed, indicating that the stock price will enter an upward phase.
- Inverted Head and Shoulders: It is a typical reversal pattern consisting of a left shoulder, a bottom, a right shoulder, and a neckline. The highs of the left and right shoulders are roughly the same, while the low of the bottom is lower than the lows of the left and right shoulders. When the stock price breaks through the neckline and the trading volume simultaneously increases, the inverted head and shoulders pattern is established, indicating that the stock price will experience an upward trend.
- Platform Consolidation: The stock price fluctuates laterally within a certain range, forming a platform-like shape. During the platform consolidation process, the trading volume is usually relatively shrinking. When the stock price breaks through the upper or lower edge of the platform, it may trigger a new trending market. A breakout above the upper edge usually indicates that the stock price will continue to rise, while a breakout below the lower edge may indicate that the stock price will continue to fall.
- Hammer and Inverted Hammer: The hammer has a long lower shadow and a small body, typically appearing at the end of a downtrend, indicating that the stock price is receiving strong support at a low level. The inverted hammer has a long upper shadow and a small body, appearing at the end of a downtrend, suggesting that the stock price may soon reverse and rise.
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The weekly level repair pattern is an important basis for judging the medium-term trend changes in stock prices, and the common ones include the following types:
- Arc bottom: This is a relatively complex bottom pattern that usually appears during the transition from bear to bull markets on a weekly chart. Its shape resembles a dish or a bowl, and the bottoming process takes a longer time. During the formation, trading volume often changes in an arc shape, first gradually shrinking, and then gradually expanding as the stock price rises.
- Triple Bottom: Also known as "π bottom," it consists of three low points and two high points. The three low points are at similar prices, and the line connecting the two high points is the neckline. During the formation process, the two high points correspond to significant trading volume, while the three low points correspond to extremely reduced trading volume. When the stock price breaks out with increased volume and rises through the neckline, the pattern is completed, indicating that the stock price will enter an upward phase.
- Inverted Head and Shoulders: It is a typical reversal pattern consisting of a left shoulder, a bottom, a right shoulder, and a neckline. The highs of the left and right shoulders are roughly the same, while the low of the bottom is lower than the lows of the left and right shoulders. When the stock price breaks through the neckline and the trading volume simultaneously increases, the inverted head and shoulders pattern is established, indicating that the stock price will experience an upward trend.
- Platform Consolidation: The stock price fluctuates laterally within a certain range, forming a platform-like shape. During the platform consolidation process, the trading volume is usually relatively shrinking. When the stock price breaks through the upper or lower edge of the platform, it may trigger a new trending market. A breakout above the upper edge usually indicates that the stock price will continue to rise, while a breakout below the lower edge may indicate that the stock price will continue to fall.
- Hammer and Inverted Hammer: The hammer has a long lower shadow and a small body, typically appearing at the end of a downtrend, indicating that the stock price is receiving strong support at a low level. The inverted hammer has a long upper shadow and a small body, appearing at the end of a downtrend, suggesting that the stock price may soon reverse and rise.