Flat top and flat bottom

Flat top

In a rising market, when the highest points of the two K lines are equal, a flat top pattern is formed. The flat top form can be composed of solid, upper hatching or cross hairs, or K lines that are relatively close together.

Flat top morphological characteristics

1. In the process of rising prices, the first K line appears

2. The highest price of the second K line is the same as the highest price of the first K line

Precautions

1 The best selling point of a flat top is the day it is formed.

2. The flat top can appear in any position, only in the high or the top of the band, is a credible top signal;

3. The flat top line is generally composed of two lines connected to each other, but in individual cases, the first line and the second line can also be counted as a flat top line one or two days apart, as long as the maximum price of the two K lines separated is the same. The flat top line of this form is more effective and reliable than two connected flat top lines.

4. The flat top line can appear continuously, that is, after the first set of flat top lines appears, another set of flat top lines appears. The second group of flat top lines is sometimes slightly higher (or slightly lower) than the first group, but whether above or below, it is a strong peak signal.

Flat bottom

In a declining market, when the lowest points of the two K lines are equal, a flat bottom pattern is formed. The flat bottom form can be composed of solid, upper hatching or cross hairs, or K lines that are relatively close together.

Flat bottom morphological characteristics

1. In the process of price decline, the first K line appears

2. The lowest price of the second K line is the same as the lowest price of the first K line

Precautions

1 The best selling point of a flat bottom is the day of the flat bottom.

2. The flat bottom can appear in any position, only in the low position or the bottom of the band, is a credible bottom signal;

3. The flat bottom line is generally composed of two lines connected to each other, but in individual cases, the first line and the second line can also be counted as a flat top line one or two days apart, as long as the minimum price of the two K lines separated is the same. A flat bottom line of this configuration is more effective and reliable than two connected flat bottom lines.

4. Flat bottom lines can appear continuously, that is, after the first set of flat bottom lines appears, another set of flat bottom lines appears. The second flat bottom line is sometimes slightly higher (or slightly lower) than the first, but whether above or below, it is a strong bottoming signal.