What is the critical jump K-line form? The dead end jump pattern actually refers to a stock price/index that was originally above or within the moving average combination, suddenly crossing the 5-day, 10 day, and 20 day moving averages downwards on a certain day, jumping short at the opening, and still unable to return above the moving average until the closing.

Due to its shape resembling a person leaping from a towering cliff, the consequences are bound to shatter into pieces, hence it is known as the 'deadly jump', which means that this form is bearish in the future and can serve as a typical selling signal.

　morphological character

There are two morphological characteristics of the suicide jump, as follows:

1. Mainly in the early stages of long-term downturns or the late stages of mid-term rebounds in long-term downturns, sometimes also occurring in the early stages of mid-term adjustments in long-term uptrend;

2. The stock price or index jumps short and opens low, falling below the 5-day, 10 day, and 20 day moving averages at the beginning, but still does not return above the moving averages until the end of the day.

precautions

Whether the candlestick of the critical jump is bearish or bullish, it will not affect its technical meaning, but if it is bearish, the bearish signal will be even stronger.

This form does not require the cooperation of trading volume. If the trading volume suddenly increases significantly on the day of the fatal jump, it means that there are main players selling or panic selling, and there is a possibility of a sharp decline in the future market. The above is all about "What is the dead end jump form? How to use the dead end jump to find selling opportunities in stock trading?" We hope it is helpful to you.