💰Seize the golden opportunity of price breakout! Have you grasped Kostolany's trading philosophy?

Today, I want to talk to everyone about the opportunity of "consolidation breakout" in investing～

André Kostolany said: "A breakout after a tight price consolidation is usually a trading opportunity worth taking risks for"✨

This statement really enlightened me! Today, I will use my practical experience to break down this trading logic👇

🔍 What is a consolidation breakout?

It's like a spring compressed to its limit; the moment it suddenly bounces back is the best time to take action! When the price fluctuates repeatedly within a certain range (for example, a narrow range for 30 consecutive days), and suddenly there is a breakout with increased volume, that’s the opportunity!

🔥 My practical tips:

1️⃣ Consolidation phase: Observe whether the trading volume continues to shrink, and the price swings back and forth like a pendulum.

2️⃣ Breakout signal: One day, there is a sudden breakout with increased volume, and the K-line body must occupy more than 1/3 of the previous consolidation range.

3️⃣ Trading strategy: After the breakout, enter lightly when the price pulls back to confirm the support level, with a stop-loss set below the previous high/low point.

💡 Key reminders:

• Don't chase prices or panic sell! Act only after the breakout is confirmed.

• Set a proper stop-loss line; protect your capital to wait for the next wave.

• Combine with MACD indicators to judge trend strength (a golden cross + increased volume is more reliable!)

📈 Here's an example🌰

Last week, a certain tech stock fluctuated between 30-32 yuan for a full 4 weeks, and suddenly one day it broke out to 32.5 yuan with increased volume. The next day, after a pullback to 32 yuan, I decisively entered, and made an 8% profit in just 3 days! This is a typical "breakout trading strategy"～

📌 Interactive topic:

Have you encountered similar breakout opportunities recently? Feel free to share your experiences in the comments!

👉 Like + save this investment tip, so you won't miss the next consolidation market!