Investors are often attracted by the sustained upward trend of individual stocks in practical stock operations. Why can stock prices form a trend upward trend and have strong ability to continue the upward trend? It is not difficult to see that this must be closely related to the hot topics, fundamentals, and market attention of the individual stock industry at that time, and the size of the theme became a short-term driving force for funds to actively participate in it. To determine whether a stock price is strong in the short term, the four elements of "price, quantity, time, and space" that technical analysis emphasizes must be met. Without any factor, the sustainability of individual stock performance will be greatly reduced.

A practical trading technique: "Short term operation principle for strong stocks falling back from high points".

Helping investors pay attention to the principle of participating in short-term bottom rebound operations, there are some individual stocks that continue to rise from the six-month line and continue their upward trend. But most stocks have peaked and fallen back in the mid-term after continuous speculation. So, when encountering a downward trend, if the stock price does not fall near the half year line, the rebound of the fluctuating stock price is very limited. Even if it rebounds, it must be fast in and out, and the stock price should only engage in short-term buying and selling operations. Subsequently, the stock price will continue its medium-term downward trend.

Important viewpoint 1: Strong stocks fall back from high levels, stop falling, and short-term rebound appears at the six-month line

After encountering high profit chips and fleeing, stocks with continuous speculation themes usually fall back to near the six-month line and rebound frequently. When encountering important support levels, the stock price usually has strong support. At this point, local rebound forces begin to accumulate, and stage long funds emerge, triggering a rebound pattern. However, the rebound is only a short-term operation form. Once the rebound increases significantly, one should choose to exit and wait, and the mid-term downward trend of the stock will still dominate.

Important viewpoint 2: Half year rebound forms a new trend of upward movement (continuing to climb again)

Firstly, this viewpoint emphasizes that after the stock price has gone through mid-term speculation and started a mid-term decline trend, it is once again affected by positive news factors when encountering important support levels, leading to a strengthening of thematic expectations and the stock price being once again boosted by funds, forming a new trend.

Secondly, of course, the best buying point to form this new trend is when the stock price rises in the early stage, falls back due to obstacles, and is supported by important points. After that, funds re-enter the market to go long and start a stronger upward trend again.

In short, the above two viewpoints should be the buying point principles that often appear in practical investment operations. Specifically, whether it is a short-term rebound or a new trend upward, more investors need to segment the fundamental and morphological changes of individual stocks to make the final judgment. Important support points have a supportive effect, determined by the distance between the high point's decline and the support level of the six-month line. If the decline distance is too close and support is not given, it is also occasional and requires investors to differentiate and treat it accordingly.