Before a major market surge, there are often three key characteristics that emerge. These three characteristics are extremely unique, and even the strongest players cannot deliberately disguise them at all times. Once they all appear simultaneously, it indicates that a major upward trend is about to roar in! If you can thoroughly understand these three characteristics, the path to financial freedom may be just within reach! This golden nugget of wisdom is something you won't easily learn even if you spend a lot of money outside; in fact, no one is willing to share it at all. But today is different; I, Old Li, don't expect anything in return, just hope you can move your little hands to like the video, follow me, and show some support!
Next, let’s talk in detail about these three key characteristics of limit up stocks, which can be simply summarized as 'orderly accumulation, measured attack, and bottoming pullback.' Some friends may feel a bit confused upon hearing this, but don’t worry, I will break it down for you.
The first is 'orderly accumulation.' When the main funds are quietly collecting chips at the bottom area, there will definitely be significant changes in trading volume and K-line patterns. In order to keep costs firmly controlled within a low price range, the bottom often exhibits a fluctuation box. The purpose of this box fluctuation can be twofold: on one hand, it continuously consumes the chips in the market, and people will notice that the stock price sometimes rapidly falls from the high of the box, creating a panic atmosphere of 'if I don’t sell now, it will be too late.' By using this back-and-forth fluctuation, the main force can repeatedly make price differences to lower costs, absorb more chips, and eliminate those who are not firmly holding their stocks, clearing obstacles for the subsequent rise; this is what is called 'orderly accumulation.'
Now let’s look at the second characteristic, 'measured attack.' After the main force completes the preliminary preparation for accumulation, a key step cannot be missed to start the market: it is necessary to gradually resolve the previously accumulated positions. The main force will not foolishly throw all their funds in at once. They are well aware that once they push the stock price up, the trapped shareholders will definitely rush to sell. Therefore, the main force usually first conducts a trial market action. This trial can take many forms, such as pulling up a large upward line, leaving an upper shadow line, or even directly sealing the涨停板 (limit-up board) with force. However, after the trial, there will often be some price adjustments. The specific extent and frequency of adjustments depend on the degree of chip collection and the selling pressure in the market at that moment; it may adjust just once or multiple times. Once the trial is over and the stock price dips again, everyone should pay attention; a major upward trend is likely right in front of you. This is 'measured attack.'
The last key point is 'bottoming pullback.' When the stock price successfully breaks through a key resistance level above, a miraculous thing happens: the original resistance level instantly 'turns into' a support level. Don’t underestimate this support level; the areas above and slightly in front of it are often where the stock price faced resistance during previous upward movements. Normally, unless it’s a stock driven by speculative funds and emotions, it is impossible to pull straight to the target price in one go. You must understand that if there are consecutive limit-up boards without follow-up funds stepping in, the main force will have trouble offloading their stocks later on. Therefore, during the rise, the stock price will likely pull back slightly; the purpose is to attract new funds to help. There is one crucial point: during the pullback, the position must not fall below the key support level; once it breaks, it’s like a building collapsing, causing panic selling among investors, and no one dares to step in. It will be extremely difficult to regain a foothold afterwards. Additionally, regardless of how the market changes, trading volume is always a key indicator. During the ongoing rise in stock prices, everyone must keep a close eye; once there is a surge in trading volume that reaches double or even astronomical levels, it could be a signal that the main force is preparing to cash out, so everyone needs to be cautious.
In summary, please remember these three key characteristics: simply put, 'buy during accumulation and breakthrough, sell during heavy volume and astronomical volume.' If you didn’t learn it in one go, don’t worry, watch it a few more times, keep the video saved, learn often and stay updated. You are also welcome to share this valuable information with friends who need it, and let’s ride the waves in the stock market together!
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