1, after finding the breakthrough, observe for another day. If the price continues to develop in the direction after the breakthrough for two consecutive days, such a breakthrough is an effective breakthrough and a safe time to enter the market. Of course, two days after entering the market, the exchange rate has changed a lot: the exchange rate to be bought is high; The exchange rate is low, but even so, because the direction is clear and the general trend is set, investors will still make great achievements, which is much better than rushing into the market.
2. Pay attention to the price level two days after the breakthrough. If the closing price of one day breaks through the downward trend line (resistance line) and develops upwards, the next day, if the trading price can cross his highest price, it means that there is a lot of buying after breaking through the resistance line. On the contrary, when the exchange rate breaks through the uptrend line and moves downward, if the next day's trading is lower than its lowest price, it means that after breaking through this line, the selling pressure is great and it is worth following up.
3. Reference volume. The same is true of the breakthrough of the trend line. When the exchange rate breaks through the line or the resistance line, if the trading volume rises or maintains the usual level, it means that many people follow up after the line breaks through, and the market has confidence in the direction of price movement, so investors can follow up and make rich profits. However, if the turnover does not rise but falls after breaking through this line, you should be careful to prevent it from returning to its original position after breaking through. In fact, the false signal of some breakthroughs may be that some large companies enter the market and force prices in a broader market, such as the entry of large investment companies and the intervention of the central bank. But market investors don't follow much, and a fake breakthrough can't change the whole situation. If you believe in such a breakthrough, you may be taken in.
4. Lateral movement. When studying the trend line breakthrough, we need to explain a situation: the breakthrough of a trend is not necessarily the immediate start of a new trend in the opposite direction. Sometimes, due to the rapid rise or fall, the market needs to be slightly adjusted and sideways. If the fluctuation range is very narrow, it will form a so-called cowhide state. Lateral exercise lasts for a period of time, sometimes days, sometimes weeks. Technical analysts call it the digestion stage or consolidation stage. The lateral movement forms some complicated figures. The direction behind the sideways is a complicated problem. Understanding the essence of sideways movement is extremely important for grasping the direction of price movement.
Sometimes, people get lost in the narrow fluctuation of the exchange rate. In fact, since sideways is a digestive stage, it means that there is great resistance in the process of rising; In the process of decline, both buyers and sellers are unwilling to give it to each other. You bought it and I threw it away. In the process of breaking through the resistance line, sideways is a bottoming process. The greater the degree of sideways, the greater the power to get rid of the cowhide state, and the rising cowhide state is a dense area. Similarly, after the rising journey, the market price will decline and there will be sideways. The dense area formed sideways is often the resistance area for the stock price to rebound and rise in the future, that is to say, without enough strength, it is difficult for the market to break through the dense area and change the downward direction. The breakthrough of closing price is the real breakthrough.