Triggering a chain reaction can also occur with excessive profit-taking (often leading to false breakouts)

A large amount of profit-taking may trigger:

Other people's stop-loss orders

Other people's take-profit orders

Some high-frequency trading bots following the trend

Forming a sharp recoil in a short time:

Selling at a high point → Faster drop

Buying at a low point → Faster rise

Thus, the market often shows:

❗“Breakthrough and then pull back”

❗“Sudden spike”

❗“After a surge, immediately turns back”

The biggest culprit behind this is——

A large number of take-profit orders instantaneously impacting the price.