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Why do we need to hit the board?
Using Chan Theory’s Top and Bottom Pattern Types and Stroke Concepts to Derive Why to Hit the Board
Skipping the basics of Chan Theory…
The original rule states: a bottom pattern type and a top pattern type are connected by a stroke
Now, I will talk about top and bottom pattern types. I don’t fully understand pattern types, only a little. It took me two years to learn.
Three candlesticks form a top or bottom pattern type, three combined candlesticks form a top or bottom pattern type, even limit-ups can form top or bottom pattern types…
As for hitting the board, a limit-up is a collection of top and bottom pattern types. Selling at a limit-up is a top pattern type, buying at a limit-up is a bottom pattern type. I personally believe that top and bottom pattern types are the products of a trade.
In a broad sense, a single trade, if we consider any candlestick before the formation of a top pattern type as a buying point, then the profit space in between is one trade.
If a top pattern type is a sign and boundary of a trade ending, then what else could serve as the sign and boundary of a trade? It could be the high point of a box, a top pattern type, a limit-up, or a large bullish candlestick… Essentially, as long as there is profit potential, the setting of boundaries can be arbitrary. Therefore, when there is a trade opportunity in one’s mind, a top or bottom will be born. This top or bottom is driven by human greed, anger, ignorance, arrogance, doubt.
Back to the topic: if a limit-up is considered one trade, then buying and selling at the limit-up form a very good pair of top and bottom pattern types.
Regarding the understanding and application of strokes, my intuition is insufficient; it took four years to get started. I will share some related knowledge here for those interested.