[Summary]
A three-sky hit is an investment adage that refers to three consecutive declines while opening a downward window.
While the sell-off is accelerating extremely, there are times when it appears that the bottom is near in the short term.
However, if the negative news is severe, the decline may continue.
What is Sanku Komi?
A three-sky strike is a pattern in which the market opens a window and continues to move downward.
"Empty" means a gap that starts even lower than the previous day's low.
The more times the downward window appears, the stronger the fire sale is.
Why is it said to be approaching the bottom?
If selling becomes extremely biased, people who want to sell may run out of stock in the short term. The idea is that after the fire sale ends, it becomes easier to buy back the stock.
For this reason, the Sanku Komi is sometimes talked about as a sign of ``oversold'' or ``approaching the bottom.''
However, this is a contrarian way of thinking.
Points to note
Sanku Taikomi is not a simple sign to buy because it is cheap. In fact, it is a very rough phase even among contrarians.
If there are factors such as deterioration in business performance, credit instability, or the risk of remaining listed, the decline may not stop.
The points you want to check are as follows.
- Is the reason for the decline temporary?
- Is trading volume rapidly increasing?
- Have you exhausted all bad materials?
- Will it hold its value after a rebound?
Summary
A three-sky strike is a pattern that indicates a situation where selling is extremely biased.
Although it is seen as a candidate for bottoming out, there is also a high risk of a reversal, so it is essential to confirm the ingredients. If the reason for the decline is serious, it won't stop even after three windows are open.