Naked K traders need to divide a transaction into three stages: finding opportunities, waiting for signals, and executing trades.

Finding opportunities

Finding opportunities means identifying potentially profitable trading opportunities amid price fluctuations. For example, when going long, naked K traders generally use the trading strategy of 'buying at support and selling at resistance' during the phase of horizontal price movement. Two important factors in finding opportunities are analyzing price structure and formulating a trading plan.

Waiting for signals

There are two waits for waiting for signals: one is waiting for the price to enter the target buy zone; the other is waiting for a signal candlestick to appear in the target buy zone, such as a Pinbar. The price movement of the trading variety may come as planned or may take another trend.

Only after the above two conditions are met do we move on to the third step.

Execute the trade.

Executing a trade is a 'buy-hold-sell' process. In fact, whether a trade is profitable, and by how much, often comes down to luck, or rather, a matter of probability.