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basic concept
Small yang (yin) line
Day trading: After 3-5 falling lines, buy above the high point of the small Yang line; the same goes for selling.
Intraday trading: Buy when there is a small positive line after 3-5 falling lines; the same goes for selling.
reversed line/hatched line
Day trading: After 3-5 consecutive falling lines, buy above the highest price of the long lower shadow line/lower shadow line; the same goes for selling.
Intraday trading: buy near the close of the long lower shadow and sell near the close of the long upper shadow.
gap
Day Trading: Buying above an upside gap high in an oversold condition; same for selling.
Intraday trading: buy on the first pullback of an upward gap from an oversold condition; same goes for selling.
Support and resistance levels, retracement key points
Look for a key point buying form in the main support area and secondary support area, and buy at a key point buying form at or near the support level; the same is true for selling.
Buy on pullbacks of 40% and below and sell just above prior highs; and vice versa.
Buy at the 50% retracement and sell at or slightly above the previous high; and vice versa.
Buy on the 60% retracement and sell just below the prior high; and vice versa.
Buy at 100% pullback and sell at 40%-50% in the opposite direction; and vice versa.
Amount of days
After a strong rise, there is a day of volume, buy; the same goes for selling.
Sell when there is day volume following multiple up bars; and vice versa.
moving average
Identify support and resistance lines.
In a strong uptrend, buy on a pullback to the moving average and confirm support; the same goes for selling.
Trading straregy
key point buy
Condition 1: The latest new high.
Condition 2: followed by 3 or more small/intermediate Yin lines.
Condition 3: followed by a small/middle Yang line, buy when the Yang line exceeds 1/16 to 1/8 of the top of the shadow line of the previous Yin line.
30 minutes to buy
Condition 1: The stock gapped and opened higher at the opening.
Condition 2: Wait for 30 minutes, and set an early warning at 1/16 of the highest price of the day after 30 minutes.
Condition 3: When the warning value is reached (the stock price has hit a new high of the day), buy. And set a protective stop loss line at 1/16 below the lowest price of the day.
Late Breakout Buying
Condition 1: The stock rose on this day (higher than the previous day's closing price).
Condition 2: The stock is positive (the closing price is higher than the opening price).
Condition 3: The stock forms a shock range or is close to the highest point of the day. (5-minute chart)
Condition 4: The shock must last at least 1.5 hours.
Condition 5: Buy when the stock price exceeds the top 1/16 of the shock range. Then set a stop loss line below the shock area.
initial stop loss
Set an initial stop loss line when buying, and sell unconditionally when the stop loss line is reached.
When buying a stock above the highest price of the previous line
Stop loss on the previous line: Set the stop loss line at 1/16 to 1/8 below the lowest price of the previous line.
Current line stop loss: Set the stop loss line at 1/16 to 1/8 below the lowest price of the current line.
When breaking through the horizontal arrangement to buy stocks
Basic stop loss method: set the stop loss line at 1/16 to 1/8 below the bottom of the shock area.
Breakthrough line stop loss method: Set the stop loss line at 1/16 to 1/8 below the lowest price of the breakthrough line or the buying line.
flat stop loss
When the stock price continues to rise, you can move the stop loss line to your buying price. (protect principal)
trailing stop
Move the stop loss line 1/16 below the low price of the day. (to protect profits)
time stop loss
If a stock has neither hit its profit target nor been stopped out on Day 5 (the day you bought it counts as Day 1), sell it.
If it is intraday trading, it is 1 to 2 hours as the time limit.
Long Weakness Sell Strategy
- When the stock gaps in half or more at the open, sell the rest of your position.
- If the stock is at or near its low for the day during the last 30 minutes of the close, sell the remainder of the position.
- After a day of sharp gains, the stock price falls back below the opening price and sells the rest of the position.
- When a stock gaps down by more than half at the open and continues to break below its low 50 minutes later, sell the remainder of the position.
When there is a sharp gap down
- Observe for 5 minutes, mark the lowest price within 5 minutes; when the stock falls below this price, sell at least half of the stock.
- At 30 minutes, mark the lowest price within 30 minutes; when the stock falls below the price, sell all the stocks.