blackcat1402

[candlepattern] Red Apricot Step Out (RASO 红杏出墙)

This is one of the unique candlestick patterns in China. Red apricot comes out of the wall (Red apricot step out, RASO) saying from the poem "You Xiaoyuan is not worth it" by Ye Shaoweng in the Song Dynasty in ancient China: "The spring breeze is full of the garden, and a branch of red apricot comes out of the wall." Although it implies that the wife is having an affair, it is only a morphological description here. Red apricot going out of the wall is a signal of the beginning of the wave band gaining momentum, and it is a good buying point. The default selling point is that the price reaches the 55-day moving average.
The moving average is in a typical short arrangement, the price has fallen for a long time and is far away from the long-term moving average. At this time, the SMA13 has a decline and tends to go flat, the price breaks through the 13 line from bottom to top, and stabilizes on the SMA13 . This is the bullish candle that stands on the SMA13 call it a red apricot step out.

1. On the day when RASO's cheating appeared, small position can be tried.
2. On the second day, choose a low point to make long entry.
3. Passive selling. The so-called passive selling means that the position will be cleared decisively when the price touches the SMA55. Because there is usually a pullback when the stock price tests the SMA55 for the first time, selling first can not only keep the profit, but also gain the operational initiative.
4. Active selling. The so-called active selling means that after the stock price hits the SMA55, if the trading volume continues to increase and supports the stock price to continue to rise, the stock will not move, or it will not be considered for shipment if it does not pull the negative line. Even if the negative line is pulled out, it should be decided according to the trend of the next day; if the positive line can recover yesterday's loss in one fell swoop the next day, continue to hold the shares, otherwise, all positions will be cleared.

It is worth noting that
1. The bigger the price drop, the better, and the bigger the drop, the smaller the strength of the short side.
2. The SMA13 must be flat, the more flat or upturned the SMA13, the higher the success rate.
3. Add EMRSI9 to filter false signals.

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