Strong Main Force Initiation Pattern: Fish Leaping Over the Dragon Gate Core Points

Note! The strongest pattern before the main force's rise is the Fish Leaping Over the Dragon Gate pattern, where the core is the resonance between the gap and the main force's behavior of hitting the upper limit. It is recommended that investors with weak recognition at the bottom thoroughly understand it. Like, save, or comment '666' to easily retain stock trading insights for future review.

1. Core Steps of the Pattern

1. After a long-term decline in stock prices, the price consolidates horizontally at a low level for an extended period, solidifying the bottom foundation.

2. A significant volume breakout occurs, surpassing the upper pressure level of the consolidation, with trading volume significantly increasing, and the main force strongly intervenes, breaking away from the cost zone.

3. The first board opens high and hits the upper limit the next day, continuing the strong momentum of the gap, preventing retail investors from entering at low prices.

4. After two upper limit hits, it again opens high and then falls back, with trading volume shrinking to below half of the upper limit day's volume (shrinking multiple), as the main force washes out; a large bearish candlestick may appear under heavy selling pressure.

5. The stock price adjusts and stops falling near the 5-day or 10-day moving average, rising again without breaking key support, demonstrating short-term strength.

6. After the stop of the decline, a volume increase occurs, indicating the end of the main force's washout and the formation of a complete pattern.

2. Three Core Key Points

1. Contains two gaps that open high;

2. After breaking the upper limit, the price adjusts and stabilizes above the moving average;

3. Healthy volume-price relationship, increasing volume during rises and decreasing volume during adjustments.

Trend traders must remember this pattern; the strength of individual stocks depends on the actions of the main force, and thoroughly understanding the basic pattern can help seize opportunities for the main force's rise.