Do you always see a surge after selling?
Key Reason: Did not understand the code for the rise after the institution's wash!
Today reveals a signal for explosive growth after a big drop - Long Shadow and Short Body, which is one of the signs of a limit-up!
What is Long Shadow and Short Body?
→ Among the two falling shadow lines, the second line's drop is greater than 5%, but the trading volume is less than the first line
→ Typical feature: price falls with shrinking volume, the longer the shadow line, the shorter the volume bar, the stronger the signal!
Occurrence scenarios and logic
✔ Appears in the early stage of an upward pullback
✔ The institution fiercely sells but with no volume → Retail panic has been cleared, chips are concentrated in the hands of institutions → The wash is about to end!
When to buy? Remember 2 signals!
1. Stand firm at the opening price of the wash K-line
2. Breakthrough Long Shadow and Short Body Highest Price
(At this time, the institution's control is strong, and a short-term rise is imminent!)
Summary Mnemonic
Long Shadow and Short Body look at the wash, volume-price divergence hides secrets
Stand firm at the price top before taking action, quick and precise short-term profits!