Candlestick exit

The appearance of two dark covers and one light cover, two light covers after dark, and a dark break in three lines, as well as the appearance of evening stars, double crows, and black three soldiers, are typical topping Candlestick combinations, which are one of the short order signals; The first light appears, the sun rises in the east, the head breaks the foot, the red three soldiers, the bullish artillery, and the rise three rules are one of the longs signals; The cross pregnant line is one of the change in market trend signals. (Specially explained in the “Market Technical Analysis” course)

Explanation of some Candlestick combination exit signals are as follows:

Longer Exit Signal

1. Bearish combination cloud cover (double Candlestick combination tactics: top inserted large Bearish line): The first candle is a strong Bullish line body, and the second candle is a long Bearish line. The opening price of the second day exceeds the highest price of the first day (that is, it exceeds the top of the Upper Shadow of the first day), but the market closes near the lowest price of the day and the closing price clearly penetrates into the body of the first Bullish line.

(1) The second Candlestick should open higher than the highest price of the first Candlestick, but the closing price should drop significantly and penetrate less than half of the entity of the first Candlestick, otherwise the analysis is not significant. The deeper the body of the second Candlestick is into the body of the first Candlestick, the greater the possibility of a market top and a fall;

(2) The second Candlestick breaks through the obvious resistance level at the opening stage and then turns downward, indicating a lack of strength in long positions and a sign that the overall trend is peaking.

(3) The Trading Volume at the beginning of the second Candlestick is also an important indicator. The larger the Trading Volume, the more potential selling pressure, and the greater the likelihood of a market reversal.

2. Bearish Combination Double Flying Crow (Double Candlestick Combination Tactics: Parallel Bearish lines at the top): The arrangement of two Bearish lines is that the first Candlestick opens high but still closes with a Bearish line, and the second Bearish line also opens high or flat with an enlarged Trading Volume and a relatively long body, but it forms a pattern similar to a head-and-shoulders. This combination of two Bearish lines constitutes a top-reversal combination with a strong turning point significance. It generally occurs in a rising trend and is a typical head Candlestick combination, which is of great reference significance in actual combat. The longer the body of the Bearish line at the top parallel lines, the larger the space for its decline!

(1) The second Candlestick should open higher than the highest price of the first Candlestick, but the closing price should drop significantly and penetrate less than half of the entity of the first Candlestick, otherwise the analysis is not significant. The deeper the body of the second Candlestick is into the body of the first Candlestick, the greater the possibility of a market top and a fall;

(2) The second Candlestick breaks through the obvious resistance level at the opening stage and then turns downward, indicating a lack of strength in long positions and a sign that the overall trend is peaking.

(3) The Trading Volume at the beginning of the second Candlestick is also an important indicator. The larger the Trading Volume, the more potential selling pressure, and the greater the likelihood of a market reversal.

2. Bearish Combination Double Flying Crow (Double Candlestick Combination Tactics: Parallel Bearish lines at the top): The arrangement of two Bearish lines is that the first Candlestick opens high but still closes with a Bearish line, and the second Bearish line also opens high or flat with an enlarged Trading Volume and a relatively long body, but it forms a pattern similar to a head-and-shoulders. This combination of two Bearish lines constitutes a top-reversal combination with a strong turning point significance. It generally occurs in a rising trend and is a typical head Candlestick combination, which is of great reference significance in actual combat. The longer the body of the Bearish line at the top parallel lines, the larger the space for its decline!

(1) Double flying crows generally do not meet the requirements of the standard form. As long as it is found to be at a high level and two Bearish lines appear after the Bullish line, regardless of whether it meets the requirements or not, it should be sold;

(2) The morphological form of the two crows on the tree sometimes resembles the trend of the evening star. When you cannot distinguish their morphological characteristics, selling them is the same.

(3) The best time to sell the Tree Crow formation is on the day it is formed. If you don’t have time to sell on that day, you should sell it the next day.