In the trading process, gaining insight into the operation trajectory of major funds and deeply analyzing the six core technical patterns can provide us with highly valuable decision-making references:
1. Divergence at the Top: When market prices continue to rise, repeatedly hitting new highs, but trading volume fails to respond accordingly, showing a shrinking trend. This phenomenon of volume-price divergence is often a dangerous signal of insufficient upward momentum and an impending trend reversal.
2. Divergence at the Bottom: Prices continue to fall, hitting new lows, yet trading volume expands against the trend. This unusual behavior often indicates that funds are quietly accumulating shares in the bottom area, signaling a potential trend reversal.
3. Breakthrough of Trend Line: Key trend lines serve as the 'lifeline' of market operation; effective breakthroughs are often crucial turning points for market direction selection, marking the potential end of the original trend and the beginning of a new one.
4. Breakthrough in Consolidation: After a prolonged period of horizontal consolidation, any signs of a breakthrough, whether upward or downward, indicate that the market is about to break the current balance, signifying an important precursor to the initiation of a trend.
5. Support and Resistance: Support and resistance levels can be seen as the 'watershed' in the tug-of-war between bulls and bears. Support levels can withstand bearish pressure and prevent further price declines; resistance levels, on the other hand, can suppress bullish movements and hinder price increases. Both are important reference points for judging price trends.
6. Accelerated Trend: When prices accelerate in the direction of the trend, it often reflects a high degree of market sentiment alignment and serves as a strong signal for short-term bursts, indicating that the trend may be reinforced in the near term.
Although these classic technical patterns can help us accurately capture the turning points of bullish and bearish forces and effectively grasp trend inflection points or continuation trading opportunities, it must be made clear that technical analysis is not a 'universal key' that works all the time. In actual trading, we must closely combine macroeconomic conditions, industry development dynamics, and fundamental information, among other multidimensional factors, to conduct comprehensive and integrated analysis and judgment, thereby developing more scientific and reasonable trading strategies.