Brothers, last night I said I would teach everyone how to see 'contraction explosion', and this morning I had a practical experience on PIPPIN, it was simply 'thrilling'.
I originally wanted to catch a bottom rebound, and I did catch the bottom, with a peak profit of 14%. However, just because I hesitated for a minute, the profit was swallowed up by fluctuations in just a few seconds, and in the end, I could only leave with a small profit.
Reviewing this 1-hour chart of PIPPIN (see above), I summarized several 'life-saving' advanced points in practical trading:
1. The 'downward opening' after a contraction is the most deadly.
You see, before the crash on PIPPIN, the Bollinger Bands contracted very narrowly (this is called 'death contraction'). Once the price breaks below the purple lower band, and the lower band opens vertically downwards like a waterfall, this indicates an extremely weak opening.