How to tell if a breakthrough is a real breakthrough and how to confirm a valid breakthrough

How to identify a true or false breakthrough.

During the trading process, it is crucial for investors to know when the trend line breaks, whether it is a valid or ineffective breakout.

In order to avoid the wrong timing of entering the market, some technical analysis experts have summarized several principles for judging true and false breakthroughs:

1. After discovering a breakthrough, observe for one more day

If the breakthrough continues to develop in the direction after the breakthrough for two consecutive days, such a breakthrough is an effective breakthrough and a safe time to enter the market. However, since the direction is clear and the general trend has been set, investors can still act, and in comparison, it is much better than rushing into the market before.

2. Pay attention to the high and low prices two days after the breakthrough

If the closing price of a certain day breaks through the descending trend line (resistance line) and develops upward, if the trading price can cross the maximum ** on the next day, it means that there is a large number of buying orders following after breaking through the resistance line. Conversely, when the upward trend line is broken and the next day's trading is below the lowest price, then it means that after the breaking line, there is a lot of selling pressure and it is worth following up selling.

3. Reference volume

Usually, the volume is a measure of market sentiment. The same goes for a breakout of the trend line. When the resistance line is broken, if the trading volume rises or remains at the usual level, it means that there are many people who follow up after breaking the line, and the market has confidence in the direction of the movement, and investors can follow up and make huge profits.

However, if the volume does not rise but falls after the line is broken, then care should be taken to prevent the breakout and then return to the original position.

4. Lateral movement

When studying the breakout of the trend line, it is necessary to explain that the breaking of a trend is not necessarily the immediate start of a new trend in the opposite direction, and sometimes the market needs to adjust slightly and move sideways up and down because it rises or falls too sharply.

If the amplitude of the fall is very narrow, it is called a cowhide state. The lateral movement lasts for some time, sometimes a few days, sometimes a few weeks before it ends, and technical analysts call it the digestion phase or consolidation phase.

In the actual operation to judge the effectiveness of the breakout, according to the system support or resistance level to judge, the stock price after a long period of unilateral **, the system from the top to the bottom of the short arrangement, once the stock price fell to the previous low near or a new low, the system from top to bottom gradually flattened, of which the short-term** from the bottom up ready to attack the system resistance level.

Normally, the height and pattern of the stock price are also important reference indicators, if the upward attack is successful, there must be a large volume to cooperate, otherwise it is a false breakthrough and should not be intervened.

When the stock price rises unilaterally after a long period of time, once the stock price hits a new high or is close to the previous high, the ** system at this time runs in a bullish arrangement.

If the stock price wants to break through the previous high, it must be established on the premise that the trading volume is greater than the corresponding trading volume of the previous high, otherwise it is a false breakthrough and should not chase up.

The stock price's breakthrough to the support or resistance level of the ** system should be based on the ** price. When the stock price breaks through the resistance level of the ** system upward, the stock price should close above the resistance level, and the corresponding trading volume is amplified, indicating that the stock price has successfully broken through upwards and should intervene in time.

When the stock price breaks through the ** system support level downward, the corresponding trading volume is enlarged compared with the initial stage, and the stock price closes below the ** system support level, indicating that the stock price has successfully broken through downward and should be out in time.

Under normal circumstances, the main force will often take advantage of the influence of bearish news to suppress the stock price downwards in the stage of chip absorption, and panic selling can occur. When the main force has absorbed enough chips in the finishing area, it will often make a last break down illusion before pulling up the stock price to confirm whether the chips are cleaned thoroughly.

Mr. Li Shanzeng, engaged in financial investment and trading for 20 years, and read traditional classics, through the realization of the "Tao", he created a unique "trading system", so that financial transactions are no longer complicated.

In basketball, one side holds the ball and frees the body from the opposing player's defense, thus creating space for one's own shooting while getting closer to the basket.

It's hard to completely outrun your opponent, so you only need to go beyond a distance of less than one body and then use the weak-side hand to make a layup. Breaking is a very practical technique in basketball, and a reasonable arrangement of breakthrough tactics can disrupt the opponent's defense and create scoring opportunities for teammates, even if they are not successful once.

Breakthrough means opening a gap, exceeding, and breaking.

Derivation. 1. Wu Yunduo, "Dedicated to the Party, Our Flat-Ground Artillery": "In the summer of 1943, some comrades of the Sixth Division Arsenal, who insisted on fighting in Jiangnan, broke through the enemy's blockade and came to Huainan. ”

2, Yang Shuo's "Spring Greeting Words": "If you don't break through the encirclement of wind and snow, spring will never be born." ”

3, Sha Ting's "Liu Yonghui": "Let's break through your eight hundred squares!" ”

Sentence. 1. How to break through the company's current predicament, everyone has mixed opinions.

2. It is not enough to maintain the status quo in the group type, we must make a breakthrough.

3. Bi Sheng invented letterpress printing, which made a new breakthrough in printing.

4. Our army has broken through the enemy's last line of defense, and victory is in sight.

5. We must continue to break through ourselves and challenge our limits.

6. Our army's million-strong division broke through the enemy's defense line in one fell swoop. Spikes or traces.

7. Everyone worked together to find a breakthrough in the problem.

8. Whenever he finds a breakthrough in a difficult problem, he can't help but dance.