These three classic combinations of candlesticks are the most common bottoming patterns, and when you open the candlestick chart, you will find that many stocks start from these three patterns. However, the clarity of the bottoming signals for these three combinations of K-lines varies. The weakest bottoming signal is the insertion line, followed by the holding line, and the strongest is the positive stimulus line.

Classic insertion line: After the stock price opened low, it did not continue to seek a bottom, but showed a clear rebound trend. However, the rebound strength was not very strong and did not exceed the opening position of yesterday's bearish line. It is equivalent to inserting the positive line on the right into the negative line on the left. This form is called an insertion line by the author. But the classic insertion line must meet the following conditions, that is, the strength of the bullish line attack must be strong, at least reaching half or more of yesterday's bearish line. Like Jinzhou Liulu, an insertion line was formed on July 12, 2005, and the stock price continued to rise, with an increase of up to 83%. We see that the bullish candlestick of the stock's insertion line has penetrated halfway through the bearish candlestick on July 11th.

Classic holding line: In fact, holding line is the evolution of insertion line. The rebound bullish line on the right has a stronger attack force. If it exceeds the opening position of yesterday's bearish line, it forms a holding line. The solid bullish line on the right has surpassed the opening position of the bearish line on the left, indicating that the attacking power of multiple parties is very strong, and its bottoming signal is much stronger than the insertion line.

Positive stimulus line: This is the strongest signal among these three forms. After a long period of decline in stock prices, a bearish candlestick suddenly appeared, and most people in the market believed that the market would continue to decline in the future. However, the next day, the stock price suddenly opened high and rose under the stimulation of positive news, and even exceeded the opening price of yesterday's candlestick, indicating a clear signal of bottoming out.

But all three forms must ensure a large amount, the larger the amount, the more reliable it is. If there are no upper or lower shadow lines on both K-lines, it is more reliable.

Of course, the author always believes that regardless of the form, signals of bottoming out on the weekly and monthly lines will be more clear, but increasing volume is necessary. These three forms would be more practical if used to judge the overall market, and we can even wait for such a candlestick combination to appear when the market is declining. Once it appears, we can basically confirm that a bottom has appeared. If there is relevant news to support it or if it is at an important support level, we can confidently buy stocks.

However, it is difficult for us to encounter very standard forms when using these combinations of K-lines, so we need to use them flexibly and not blindly apply them. For example, K-lines may have upper and lower shadows, but the physical parts must conform to the characteristics mentioned above.

There are many bottom signals, and the formation principle of these three types of K-line combinations is the same, except for the difference in signal strength. They often evolve with each other, providing us with many reliable basis for judging the future market. Readers need to dynamically analyze their formation process, so as to draw analogies from one example.