How to determine effective breakthrough techniques for stock prices

When the overall market index continuously breaks through the support of the moving average system and shows a downward trend, it once again greatly undermines the confidence of investors who have just recovered. If we look at the recent market changes, we can see that many stocks have already emerged from the temporary bottom zone. Choose stocks in this market that are above the support level of the moving average system, without worrying too much about the rise and fall of the overall index.

Generally speaking, during the buying phase, market makers often take advantage of negative news to lower the stock price, and only then can panic selling occur. After the market maker has accumulated enough chips in the consolidation area, they often create another false impression of breaking through the level and descending before boosting the stock price, in order to confirm whether the chip cleaning is thorough. According to the principle of the "three line rule of quantity and price", there are several methods to determine whether the stock price has effectively broken through the support level (or resistance level) of the moving average system in practical operations, including the following: When the stock price experiences a long-term unilateral decline, the moving average system arranges bearish positions from top to bottom. Once the stock price falls near the previous low point (or reaches a new low), the moving average system gradually flattens from top to bottom, with short-term moving averages preparing to attack the resistance level of the moving average system from bottom to top. If the stock price attack is successful, there must be a large trading volume to cooperate, otherwise it is a false breakthrough and should not be intervened. When the stock price rises unilaterally after a long period of time, once the stock price reaches a new high (or approaches the previous high point), the moving average system runs in a bullish sequence upwards. 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 pursued. 3. The breakthrough of stock prices to the support (or resistance) level of the moving average system should be based on the closing price. When the stock price breaks through the resistance level of the moving average system upwards, the stock price should be above the resistance level, and the corresponding trading volume increases, indicating that the stock price has successfully broken through upwards and should be intervened in a timely manner. When the stock price breaks below the support level of the moving average system, the corresponding trading volume increases compared to the initial stage, and the stock price closes below the support level of the moving average system, indicating that the stock price has successfully broken through and should be eliminated in a timely manner.