Kata 2 refers to the second profitable swing.

​

Kata 2 Long (K2L) occurs after a profitable up swing (whether you took it or not does not matter), followed by a retracement with a higher low and then the resumption of the uptrend.

​

Kata 2 Short (K2S) occurs after a profitable down move (again, whether you took the trade or not does not matter), followed by a bounce up, with a lower high and then the resumption of the down trend.

​

Note that with the Kata 2 scans, due to limitations in TC2000, we cannot determine if the prior swing was profitable or not. So please do your own assessment on the results of this scan, whether you'd justify it as a Kata 2.