The three features I discussed today, when appearing simultaneously, even the main force cannot execute them all at once. As long as these three major features appear, what follows is the initiation of a main rise.
If you can comprehend and grasp these three features, then financial freedom is not far away. However, it's tough to learn outside, and often no one will tell you. But today, if you spend two minutes watching the video, Old Li doesn't want anything from you; all I need is for you to give me a thumbs up and follow me to show your support.
Today's three major characteristics of stock price surge can be summarized in one sentence: orderly accumulation, balanced aggression, and strong support during pullbacks. Some friends may not understand this, so I will try to explain it in more detail for everyone's convenience.
The first feature is orderly accumulation. It is important to know that when the main funds are collecting chips in the bottom area, there will certainly be significant changes in trading volume and candlestick patterns on the market. In order to control costs within a low price range, it is very noticeable that a consolidation box appears at the bottom, and the purpose of this box consolidation mainly has two aspects: it continuously consumes the patience of the chips in the market, and the stock price may quickly drop at the high end of the box. This gives the impression that if you don't run now, you won't be able to escape. After a period of back-and-forth adjustments, it can lower the cost through constant trading and absorb more chips, while also excluding the weak hands, facilitating the subsequent surge. This is the Xichou game.
The second feature indicates that the main force has completed the second step of the accumulation phase. For the market to start, it is essential to continuously eliminate the previous concentrated holding positions; otherwise, it is impossible to blindly pour in their funds. They also understand well that if I raise the price, you will sell, so they often take initial trial actions. The purpose is to confirm how much selling pressure remains after washing out the chips. The trial action may involve large orders or upper shadows, or even direct circuit breakers, leading to varying degrees of adjustments later on, depending on the current situation of the main funds' chip collection and selling pressure. This could happen once or several times, and once the trial action ends, the stock price will dip again. At this point, it indicates that a wave of main rising will not be far off; this is the balance of aggression.
The last feature, a pullback to the bottom, indicates that the original pressure level after breaking through the upper resistance has turned into a support level, with upward resistance levels above it. Under normal circumstances, as long as it is not driven by speculative funds, the stock cannot be pulled up to the target price in one go. One must understand that if there is a continuous limit-up without following consumers, they themselves cannot sell their shares. Therefore, at this time, a slight pullback is needed during the rise, mainly to attract new funds to enter the market. A key point here is that the pullback position must not break through the critical support level. Once it breaks, it will be like a tree falling, scattering the monkeys, and no one will take over the shares. It will be extremely difficult to stabilize again. This is why it is said that a pullback support must have a bottom. Of course, regardless of how the market changes, trading volume remains the fundamental principle. During the continuous rise, one must always pay attention; if there is a significant increase in volume or even a massive volume, it indicates that the main force has slipped away. Therefore, please remember the three main features: accumulate in the Xichou and break through, sell when there is excessive volume and massive volume. If you haven't learned it yet, please watch it a few more times and save it for constant learning, and you can also share it with friends who need it.