The stock price shows a sideways trend after a significant increase, forming a relatively high point. Investors, especially those with large amounts of funds, must sell or reduce their positions at the first selling point. The technique for determining the validity of the first selling point at this point is "when the stock price is sideways and the MACD is a dead cross", and the day of the dead cross is when the first selling point is formed. After the formation of the first selling point, some stocks did not experience a sharp decline, which may be due to the bullish main force pretending to break through upwards to cover up shipments after the pullback, making the last upward push before selling. The technique for determining the establishment of an absolute top is when the stock price experiences a virtual surge and reaches a new high, but the MACD cannot synchronize. The area of the second red wave is significantly smaller than that of the previous wave, indicating that the volume can continue to decline. This creates a divergence between the two trends, which is a clear signal that the stock price has peaked. The high point formed at this time often becomes the highest point of a bull market. If we cannot escape smoothly at this time, the consequences will be unimaginable. It must be noted that when selling stocks at the absolute top, one must not wait for the MACD dead cross before selling, as the stock price has already fallen significantly by the time of the MACD dead cross. When selling stocks at the top of virtual waves, one must refer to the K-line combination. This is also the flaw of MACD as a medium-term indicator.

Usually, after a long or rapid unilateral trend, the market shows a large volume or extreme reverse trend, accompanied by classic technical evidence, such as the K-value of the KDJ line reaching 85 or above, which is a typical signal of peaking. When the J value of KDJ indicator changes its upward trend and turns downwards, sell 50% first; When the trend of k value increases, you can prepare to sell. When the trend of k value changes, you can turn downwards and clear your position; When the KDJ indicator forms a dead cross, this is the final selling point. However, due to the frequent occurrence of a "bottom in the bottom" situation in technology, this KDJ indicator often fails.

A long overhead shadow is a clear signal of a visible peak. In an uptrend, the stock price rises to a certain stage, continuously increasing volume or continuously increasing volume for 3-5 trading days, and the daily turnover rate is above 4%. When the maximum trading volume occurs, the turnover rate often exceeds 10%, which means that the main force is pulling up shipments. If there is a long upper shadow at the close, it indicates a surge and a pullback, indicating heavy selling pressure. If the stock price cannot recover from the upper shadow line of the previous day the next day and trading begins to shrink, it indicates that the market will adjust in the future. In this situation, it is necessary to resolutely reduce or even liquidate positions.

After a significant increase, systemic risks in the market may be brewing and erupting, and special attention must be paid to the daily candlestick. The key to selling stocks is when the candlestick shows a cross or a long upper shadow with a hammer shaped bullish or bearish candlestick. The appearance of a high-level cross star on the daily candlestick indicates a strong divergence between long and short positions, and the situation may shift from a buyer's market to a seller's market. The appearance of a cross star at a high level is like a red light at a crossroads, reflecting that the market will undergo a turning point. To avoid risks, shipments can be made.

When the stock price no longer forms a new breakthrough and forms a second head, it should be resolutely sold, because from the first head to the second head, it is the main distribution stage. The M-shaped pattern is a pattern where the right peak is lower than the left peak, which is considered to be a bullish trend. Sometimes, the right peak may also form a bullish trend that is higher than the left peak, and then reverse and fall more terrifyingly. As for other head shapes such as head and shoulder tops, triple tops, and circular tops, they are the same. As long as they fall below the neck line support, they must quickly liquidate their holdings to avoid further losses.