Attention! The stage of the main force's initiation and rise often involves these four types of rising techniques. Understanding the main force makes it easy to tell whether it is a washout or a sell-off. This includes both strong and slow rises by the main force. If you are still unfamiliar with the behavior of the main force, then you must carefully watch this content.
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1. Violent Rise
This is also a type of rapid rise by the main force. When the stock price is at a low level, a significant rise occurs in just a day or two, such as consecutive limit-up boards, and during this process, there will generally be a gap. The increase is very steep, and the trading volume will expand. This indicates that the main force has a relatively concentrated position and has completed the building of their position. Therefore, they need to quickly break away from their cost range. This kind of trend typically appears more frequently in popular sectors.
2. Sideways Rise and Wash
This is also a process of oscillating rise. In the early stages of an upward trend, the stock price rises in a wave, then pulls back for a while. However, throughout the entire process, the high points of the stock price continue to rise, and the low points also keep rising, forming a wave pattern. In the entire rising process, bullish candlesticks often outnumber bearish ones, while the bearish candlesticks are actually the main force's washing technique. They raise while washing, making the market's chips more stable.
3. Stepwise Rise
This shape appears frequently on intraday charts. The stock price first rises in a wave, then begins to consolidate, and continues to rise afterward. It resembles ascending steps, creating a staircase-like pattern. During the entire rising process, the stock price will show an increase in volume, while the consolidation phase will show a decrease in volume. If there is an increase in volume during the consolidation phase, caution is warranted.
4. Bulldozer-style Rise
This is a typical slow bull-type rise. Throughout the process, the stock price rises very slowly but can achieve a series of small incremental increases, usually consisting of small bullish or bearish candlesticks, with almost no deep pullbacks. This indicates that the main force has control over the market, with a slow rise and a relatively gentle trend. Therefore, during the operation of the stock price, the 20-day moving average is a critical line.
Alright! These are the four types of trend shapes in the main force's rising process. Below, I have prepared corresponding case images. It is recommended to view the article and case images together. I hope this inspires everyone, as this is the most basic content, and it is important to thoroughly understand it. See you in the next content.