How to confirm an effective breakthrough
In practice, we can judge the breakthrough according to the support level or resistance level of EMA system. After a long period of unilateral decline, the EMA system is arranged in a short position from top to bottom. Once the stock price falls to a previous low or a new low, the EMA system gradually flattens from top to bottom, and the short-term EMA is ready to attack the resistance level of the EMA system from bottom to top. In general, the level and form of stock prices are also important reference indicators. If the attack is successful, there must be a large amount of cooperation, otherwise it is a false breakthrough and should not be involved. When the stock price rises unilaterally for a long time, once the stock price hits a new high or is close to the previous high point, the moving average system at this time runs upward in a bullish arrangement. If the stock price wants to break through the previous high point, it must be based on the premise that the trading volume is greater than the corresponding trading volume of the previous high point, otherwise it is a false breakthrough and should not be chased up. The breakthrough of stock price to the support level or resistance level of moving average system should be based on the closing price. When the stock price breaks through the resistance level of the moving average system, the stock price should be above the resistance level, and the corresponding trading volume is enlarged, indicating that the stock price has broken through successfully and should be involved in time. When the stock price breaks through the support level of the moving average system, the corresponding trading volume is enlarged compared with the initial stage, and the stock price closes below the support level of the moving average system, indicating that the stock price has broken through successfully and should be out in time. Under normal circumstances, the main force will often use the influence of bad news to suppress the stock price downward in the financing stage, and panic selling can appear. When the main force has absorbed enough chips in the consolidation area, it often creates the illusion of the last broken position before raising the stock price to confirm whether the chips have been thoroughly cleaned.