When resisting a single order, when is the right time to cover the position? Here are three practical tips:
Assuming that you are currently trapped in a short position
1. When the K column gradually enlarges, do not cover the position. At this time, the upward momentum is expanding. Wait until the K column turns from large to small and closes with a red column before covering the position.
2. It is best not to cover the position during the rise. In simple terms, do not cover the green column, and cover it when the red column appears. Because from my experience, most of the time, waiting for the red column to cover is much better than covering the position during the green column process.
3. Draw the upper resistance. If there is no resistance above, it can be judged as a breakthrough of the box. Then you need to use the box 1:1 theory to draw the upper potential resistance, and then observe whether the K column is blocked by these potential resistances during the rise. If the red column closes to confirm, you can cover it.
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