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Stock Price Behavior Analysis Course

Lesson 20: Observations and Signals of Bull-Bear Power Transition

Behind the market's price fluctuations lies a tug-of-war between bullish and bearish forces. Today, we will learn to identify when the bulls and bears alternate in dominating the market, which is the key technique for capturing reversal and scaling-in points.

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1. Key Points for Judging Bull-Bear Power

1. Position and Shape of K Candles:

　For example, a long bullish candle appearing above support → Bullish attack; a long bearish candle breaking below support → Bearish control.

2. High-Low Point Structural Changes:

　If previous highs no longer reach new highs and lows are broken, it indicates a weakening of bullish power and a strengthening of bearish power.

3. Volume Changes in Combination with K Candles:

　Rising without volume → Insufficient buying pressure; falling with volume → Strong selling pressure; and vice versa.

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2. Common Transition Signals

• Strong to Weak:

　Appearance of shooting star, hanging man, long upper shadow candles, along with shrinking volume or high divergence.

• Weak to Strong:

　Appearance of hammer candles, long lower shadow candles, or bottom bullish engulfing, with rising trading volume.

• Neutral → Leaning Towards One Side:

　Originally moving sideways without direction, starting to see consecutive bullish/bearish candles, or breaking out of a range → Market direction begins to clarify.

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By grasping these details, you will no longer passively react but will be able to actively harness the power of turning points.