To draw high and low points, it is necessary to use moving averages as assistance. Following the same moving average allows you to draw high and low points of the same level. High and low points of the same level have significance for comparison; different levels of high and low points cannot be compared. When placing an order, it is essential to follow the 'double breakout', which means that 'pattern breakout + moving average breakout' must occur simultaneously to be considered a breakout. From a probabilistic standpoint, the advantages of a double breakout are greater.
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Once you become proficient, you will understand that moving averages represent levels and average costs. Structural transformations occurring near moving averages are meaningful; in other words, only pattern breakouts happening near moving averages have trading reference significance. If not near, there can be numerous patterns. Looking solely at pattern breakouts, the probability of confirming turning points is much smaller compared to double breakouts, as some pattern breakouts are relatively small, making it impossible to profit or potentially resulting in losses, so moving averages need to be used for filtering. This can also be understood as the big principle of 'long online, short offline'; when candlesticks repeatedly cross moving averages, filter using the high and low points of the price.
