Beware of this K-line
Trading technical exchange:
When we trade, we expect to buy on dips during a pullback.
However, when a pullback occurs
and the K-line shows a long body, beware that the trend may change.
Use Bollinger Bands to escape peaks and buy bottoms
Remember these 6 practical rules:
1. Three upward candles, buy at the midline of the price.
2. Three downward candles, sell at the midline of the price.
3. Three lines flat, buy at the lower line, sell at the upper line.
4. Three lines opening upward, price is bullish, watch for a breakout.
5. Three lines opening downward, price is bearish, exit quickly.
6. Three lines narrowing indicates consolidation, observe and wait for direction.
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