Today, we will share a practical trading technique: "The principle of short-term operation when a strong stock falls back from its high point". I don't know if you have noticed a pattern: some stocks that have peaked and fallen back in the mid-term after continuous speculation, after falling to the six-month line, have an upward trend that extends to the six-month line. If we intervene at this time, we can make a profit.

The reason for this is that strong stocks often experience a short-term rebound after falling from a high position and stopping the decline at the six-month line. After encountering high profit chips and fleeing, stocks 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 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.