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Signal K-line Special:
Always long: Only buy, never sell short.
1, Market Price Buy
2. Buy Stop Order
3. Buy at the close of a bullish candle - bet on the trend to continue.
5. Buy on bearish candle close - bet on failed bearish reversal
Always in short: only short, not long.
1. Market Price Short Selling
2. Sell Stop Order
3. Sell on a bearish candle close
4. Selling on a bullish candle close - betting on a failed bullish reversal
The background of the trend candlestick is more important than the signal candlestick itself.
A long lower shadow bearish candle in a downtrend is not a buy signal; in an uptrend, a long lower shadow represents a failure of bearish reversal, indicating that bears do not have the strength to close the candle at the lowest.
In a narrow range of fluctuations, a large signal k is not a good choice; the risk-reward ratio is poor.
All double top reversals are L2 reversals.
All double bottom reversals are H2 reversals.
All wedge top reversals are L3 reversals.
All wedge bottom reversals are H3 reversals.
Pregnancy Line: inside bar
Engulfing line: outside bar
There are many engulfing lines and inside bars in the volatility range, which don't represent much.
A strong signal is needed for a reversal against the trend.
Bad background (strong trend background, bad background relative to counter-trend) + bad counter-trend signal k, one can bet on reversal failure and go with the trend.