#成长值抽奖赢iPhone17和周边 The risk of a spinning top in a Candlestick is very high, mainly for the following reasons:
- Difficult to discern the intentions of the main force: The consolidation line is a candlestick pattern composed of a long upper shadow candlestick and a long lower shadow candlestick. It may signal either the main force's washout or selling. If it is a washout, the stock price may continue to rise; however, if it is selling, the stock price may drop significantly. For example, if a consolidation line appears during the initial phase of a price increase, it may indicate that the main force is clearing floating shares in preparation for a subsequent rise; whereas if a consolidation line appears at a high point after a significant price increase, it is likely that the main force is confusing retail investors through up-and-down fluctuations to take the opportunity to sell. Ordinary investors find it challenging to accurately judge the true intentions of the main force, leading to misjudgments.
- Market Uncertainty Impact: The effectiveness of the consolidation line needs to be judged in conjunction with the market conditions. When the market conditions are good, the consolidation line may be an effective signal for a washout, but when the market conditions are poor, the probability of the consolidation line being misleading is greater. For example, during a market crash phase, even if individual stocks show a consolidation line, it may just be a temporary fluctuation, and they will continue to follow the market down.
- Utilizing Retail Investor Psychology: The main force often uses candlestick patterns to harvest retail investors. The appearance of these patterns can cause significant price fluctuations in the short term, first using long upper shadows to induce panic selling from some profit-taking and trapped positions, and then using long lower shadows to make investors believe there is support and chase in, while the main force takes the opportunity to achieve its goals, such as shaking out or unloading. If retail investors cannot see through the intentions of the main force, they can easily be washed out or end up buying at high positions during such fluctuations.
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#成长值抽奖赢iPhone17和周边 The risk of a spinning top in a Candlestick is very high, mainly for the following reasons:
- Difficult to discern the intentions of the main force: The consolidation line is a candlestick pattern composed of a long upper shadow candlestick and a long lower shadow candlestick. It may signal either the main force's washout or selling. If it is a washout, the stock price may continue to rise; however, if it is selling, the stock price may drop significantly. For example, if a consolidation line appears during the initial phase of a price increase, it may indicate that the main force is clearing floating shares in preparation for a subsequent rise; whereas if a consolidation line appears at a high point after a significant price increase, it is likely that the main force is confusing retail investors through up-and-down fluctuations to take the opportunity to sell. Ordinary investors find it challenging to accurately judge the true intentions of the main force, leading to misjudgments.
- Market Uncertainty Impact: The effectiveness of the consolidation line needs to be judged in conjunction with the market conditions. When the market conditions are good, the consolidation line may be an effective signal for a washout, but when the market conditions are poor, the probability of the consolidation line being misleading is greater. For example, during a market crash phase, even if individual stocks show a consolidation line, it may just be a temporary fluctuation, and they will continue to follow the market down.
- Utilizing Retail Investor Psychology: The main force often uses candlestick patterns to harvest retail investors. The appearance of these patterns can cause significant price fluctuations in the short term, first using long upper shadows to induce panic selling from some profit-taking and trapped positions, and then using long lower shadows to make investors believe there is support and chase in, while the main force takes the opportunity to achieve its goals, such as shaking out or unloading. If retail investors cannot see through the intentions of the main force, they can easily be washed out or end up buying at high positions during such fluctuations.