In a strong trend, we actually do not need complex K signals. As long as the trend is "always long", that is, with a clearly bullish structure, we can only follow the trend and trade longs; we cannot go against the trend. In this situation, we can go long for any reasonable reason.
We must also take into account that the same black body candle with a long lower shadow has a completely different meaning in different trend zones.
In a downtrend, it is only a pullback during the bearish process; but in a strong bullish trend, its meaning is completely reversed. [28/11, 2:51 p.m.] +52 55 6113 7052: As shown in the image, the long lower shadow of this K candle represents a bear attempt to counteract by trying to press the trend. The bear reversal attempt fails, and they cannot even close at a low level. The market sees that the bear attack fails, and some investors choose to buy at the close, betting that the trend will continue bullish.
therefore the same K candle in a bearish trend is a correction but in a bullish trend it is a signal of victory for the bulls what really determines the meaning is not the K candle itself but the trend environment in which it is located [28/11, 2:57 p.m.] +52 55 6113 7052: 🕯 To close the afternoon, we are going to review the entire market in November During the first half of the month, the market did everything possible to generate panic, trying to convince everyone that the "AI supercycle" had ended. Every drop in tech stocks was sold as if it were the burst of a bubble.
But towards the end of the month, that discourse was losing strength. The Federal Reserve suddenly changed its tone and sent a key, very soft signal: rate cut. This caused the probability of a cut in December to rise from 39% to 85% in just one week. Risk assets reacted immediately and "revived".
However, it is important to be clear that this "revived" does not necessarily mean a change in trend. [28/11, 3:15 p.m.] +52 55 6113 7052: The performance of the dollar this month is the clearest evidence to judge the direction of funds. The DXY index had its worst week in nearly four months, indicating that global money is moving away from the dollar, betting on the logic that the Federal Reserve will likely become more dovish.
At the same time, the stock market rebound is not a sign of enthusiasm, but rather a kind of sigh of relief. No one dares to make big moves before Thanksgiving, and the trading volume is so low that it seems like the oxygen has been taken out. Once liquidity decreases, all movements appear slower. That is why what we are seeing now, the increase, resembles more of a holiday bounce than a trend change.
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In a strong trend, we actually do not need complex K signals. As long as the trend is "always long", that is, with a clearly bullish structure, we can only follow the trend and trade longs; we cannot go against the trend. In this situation, we can go long for any reasonable reason.
We must also take into account that the same black body candle with a long lower shadow has a completely different meaning in different trend zones.
In a downtrend, it is only a pullback during the bearish process; but in a strong bullish trend, its meaning is completely reversed.
[28/11, 2:51 p.m.] +52 55 6113 7052: As shown in the image, the long lower shadow of this K candle represents a bear attempt to counteract by trying to press the trend. The bear reversal attempt fails, and they cannot even close at a low level. The market sees that the bear attack fails, and some investors choose to buy at the close, betting that the trend will continue bullish.
therefore the same K candle in a bearish trend is a correction but in a bullish trend it is a signal of victory for the bulls what really determines the meaning is not the K candle itself but the trend environment in which it is located
[28/11, 2:57 p.m.] +52 55 6113 7052: 🕯 To close the afternoon, we are going to review the entire market in November
During the first half of the month, the market did everything possible to generate panic, trying to convince everyone that the "AI supercycle" had ended.
Every drop in tech stocks was sold as if it were the burst of a bubble.
But towards the end of the month, that discourse was losing strength.
The Federal Reserve suddenly changed its tone and sent a key, very soft signal: rate cut.
This caused the probability of a cut in December to rise from 39% to 85% in just one week.
Risk assets reacted immediately and "revived".
However, it is important to be clear that this "revived" does not necessarily mean a change in trend.
[28/11, 3:15 p.m.] +52 55 6113 7052: The performance of the dollar this month is the clearest evidence to judge the direction of funds. The DXY index had its worst week in nearly four months, indicating that global money is moving away from the dollar, betting on the logic that the Federal Reserve will likely become more dovish.
At the same time, the stock market rebound is not a sign of enthusiasm, but rather a kind of sigh of relief. No one dares to make big moves before Thanksgiving, and the trading volume is so low that it seems like the oxygen has been taken out. Once liquidity decreases, all movements appear slower. That is why what we are seeing now, the increase, resembles more of a holiday bounce than a trend change.