Even if it is the same candle diagram, the intensity of the signal is different (the direction is still the same) and the specific manifestations are different. For example, all "see up and swallow" forms send out bullish signals, but the signal intensity of different bullish forms is different.
In actual combat, if investors know how to identify the signal strength by shape, it will greatly improve the accuracy and security of trading.
Different trends, different places, different power times.
In different trends or different positions, even if the candle diagram is exactly the same, its signal intensity will be different. For example, even in the same "hammer line" bullish form, the signal intensity in a bull market is naturally stronger than that in a bear market. In addition, the distance from the resistance level or support level and the shape of the previous candle line will affect the signal intensity of the current candle diagram.
Different signal strengths, different trading signals.
Why do you care so much about candles? The signal strength of graphic form is because different signal strength will bring different trading signals. Trading signals can be divided into advertising signals and trading signals. This is the signal system of "prepare first, then start". Early warning signals only remind investors to be vigilant and be prepared, and they don't have to take immediate action. Only after the buying and selling signal appears, it is equivalent to starting the gun, and investors can take action according to the direction of the signal.
For example, the stock price has been rising before, and there is a bearish warning signal at this time. Investors need to be vigilant and ready to sell at any time, but they can still hold shares before the selling signal appears. If there is a selling signal behind, investors can sell; If there is no selling signal in the future, then investors should continue to hold stocks to be increased.
Different business opportunities.
This is a key point that investors need to pay special attention to when applying candle diagram technology.
Different forms have different specific trading opportunities. Some can act immediately after the appearance of the form, while others need investors to continue to observe and decide.
Decide whether to act or not. Even in the same form, the trading opportunities are different in different trends and different positions.
Web page link