Graphic from Zhihu @ Josilag
In the genre of naked K-line trading, traders believe that all bullish or bearish information has been consumed by people or institutions who have the ability to know in advance, which is reflected in the formed K-line. The formed K-line is the result, not the cause. The reason is unpredictable and unimportant.
People who only profit from naked K trading have a mature price action judgment system behind them. It's not a fixed method, it's logic, it's the essence of the market, and it's the game between human nature and emotional power behind the price movement.
When people are in a state of tension, the predictability of people's decision-making and behavior is greatly improved, and they are generally more desperate and full of urgency. This is precisely the research essence of price behavior behind naked K trading → imbalance between supply and demand.
In fact, the imbalance between supply and demand does not necessarily mean that there are more parties and fewer parties, but a desperate and urgent imbalance.
Imagine that on the beach, the behavior, location and walking route of tourists are basically unpredictable. However, when the red alert at sea suddenly sounded, whether it was a tsunami or a shark attack ... at this time, their walking route began to become easy to predict.
There are two things that can make a profit through naked K trading.
1. Anti-weakness
2. Counter-quilt trader
Find out the weakness, find out the quilt trader, enter the market against the trend, make your order a part of the order flow that triggers the trap, and make the quilt trader a price-driven fuel, so as to make a big profit from it.
As long as you have some basic understanding of the relationship between quantity and price and the concept of supporting resistance, anyone can effectively see the contents behind some charts from the disk (K-line chart).
The so-called analysis does not need complicated research, fancy forms or even staring at the disk day and night. You only need to understand the meaning of each K-line, and combine these K-lines, and you can naturally calculate some probabilities and directions.
With these basic knowledge, you can avoid misfortune ... in your investment trip.
More sour and refreshing contents of the "naked K trading method" will continue to be exported. I hope everyone will walk on the road closest to the essence of the market.