01 Go long on the second breakthrough
Let’s take a look at the pictures first
First of all, Vegas is a multi-head arrangement
Tell us it's a bull trend
If you want to increase your winning rate, you should buy on dips
Let’s first look at K line 1
This is a strong short trend K
This is the so-called large volume K line
This is mainly because many people are not optimistic about the market outlook and are selling their chips one after another.
A large number of sell orders were issued, causing prices to drop sharply.
But the No. 2 K line that follows it
Strong bull trend K line
Quickly recover lost ground
Almost breaking through the high point of K line 1
And there is no upper shadow line at all
It proves that at this time, it is invisible
Hidden, strong buying power
Holding my pocket, I caught all the chips being sold from above.
and try to raise the price
The bullish trend then continued
But as the amplitude of the K line continues to shrink,
The upper shadow line keeps getting longer
Proving the strength of this rebound
is being continuously reduced
Finally on the No. 3 K line
A K-line appeared that broke through the previous K-line low point
That is low 1
But the No. 3 K line finally closed one line
Pinbar with long lower shadow
and follow closely
Another small bullish trend K line was closed
Proving that bulls are still strong and have the upper hand
And the bulls want to try again, pushing the price higher
But it ended in failure, and the price failed to break through the previous high.
That is, the short yellow pressure level
What's more important is that the bears are showing strength at this time.
On line 4 K
The K-line that broke through the low point of the previous K-line appeared for the second time.
That is low 2
Then at this time
This forms what we often talk about
SB structure (Second Breakout)
It is a great short-selling opportunity
But since short selling is against the trend at this time
So we are bearish but not short.
So why is there a lot of selling pressure again at this time?
It is possible that the original short position is hoping to get out of the position quickly while the price is high.
It is also possible that the bulls who entered the market at No. 2 K just now made a profit and exited the market.
It is more likely that the network was disconnected due to the earthquake just now, making it impossible to protect the market...
There may be thousands of reasons behind this, and it is impossible for us to find the truth.
There's no need to find the truth.
Because we can already feel the risk in advance just by looking at the icon, it is indeed going to fall.
As expected, the decline triggered by K No. 4 continued.
It has fallen to the starting point of the bullish trend just now, the bottom of K-line No. 2
Then we saw K-line No. 5, which closed a strong long outsourcing K-line
After swallowing up the previous three negative lines, the bulls once again exerted their strength, hoping to push the price higher
So why do the bulls choose to protect the market and raise the price here?
There is only one answer
People who buy on K-line No. 5, and people who buy on K-line No. 2
They are actually a group of people, which we generally call
“Smart Money”
They don’t want to suffer losses. They are more capable than retail investors and can control market price trends.
So at this time, we should closely follow the footsteps of "Smart Money"
Go long boldly
Stop loss should be placed at the low point of No. 5 K, and take profit should be a fixed profit-loss ratio of 2 times.
The trading plan is formulated, and the rest is left to time
Then the price reaches our take profit level and the order is eliminated.
Okay, that’s it for today’s first entry pattern.
I am a panda coach who is good at making complex problems simpler.
We will update the second entry form next Saturday, don’t forget to pay attention and give us a little love.