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Breakthrough Topic:
1. What kind of breakthroughs have a high success rate?
It is necessary to have good follow-up; only by going against the trend can one continuously stop loss and exit.
2. A weak breakout is likely to have a deeper pullback.
High Success Rate Breakthrough:
Breakthrough k
1. Large volume.
2. Close at the lowest or highest, with almost no wicks.
3. Far enough from the previous range.
4. The number of K-lines that have been broken through is large.
5. There is a sense of urgency in the formation of a breakout k.
When the surprise candlestick occurs, and a low probability event or a strong breakout happens, there is a high probability of a second wave of rise or fall.
2nd leg trap:
big up, big down, big confusion: Big rise and big fall are characteristics of the oscillation range.
In a volatile range, the second segment often looks very strong, as if it's about to break through, but many are just traps.
Do not increase your position in the second phase of a volatile range; protect at least part of your profits; if there are good signals, you can make a reversal.
Breakout Test:
After a breakout with a significant pullback, it is likely to form a wide channel, which is suitable for participating again after a correction; if there is no complete retest of the breakout point after the breakout, forming a gap, it indicates a stronger trend. The probability of a direct reversal after a narrow channel or a buying climax is quite low, while the probability of transitioning into a consolidation range is somewhat higher.
Suprise Bars "Surprise" K-line: A signal that suddenly changes the market cycle. If the volume is very large, it may have good follow-through, and there is a high probability of developing into a new trend; if it is not particularly strong compared to the previous trend, it is likely to lead to a small reversal, transitioning from a strong trend to a weak trend or a range-bound market.
Newbie traders should not look for reasons or excuses when facing a "scary" candlestick; they should leave immediately.