Basic K-line Knowledge: A spike is an 'alarm', not an 'instruction'.
Paying attention to spikes at the top is a strong warning signal of bullish exhaustion; the subsequent trend depends on confirmation.
1. High probability of a downtrend:
Key signal: Spike occurs with increased volume, and the price subsequently breaks below key support levels (such as moving averages, previous lows).
Market performance: Sentiment turns pessimistic, possibly indicating distribution by major players.
Strategy: Consider reducing positions or shorting.
2. Entering a range consolidation:
Key signal: After the spike, trading volume decreases, and the price fluctuates repeatedly within a specific range.
Market performance: Significant divergence between bulls and bears, trapped in a stalemate, waiting for a new catalyst (such as major news) to break the balance.
Strategy: Wait and see, or conduct range trading with high sell-low buy operations (higher risk).
