Trend tracking: In-depth analysis of the “single positive without breaking” pattern

When talking about trend pattern analysis, traders often hear “single positives not break”. This trend phenomenon often indicates that the buyer’s strength in the market is strong at this moment and the seller’s strength temporarily weakens. So when encountering this trend pattern, how can you trade and enter the market?

“Single positive unbreakable” is a unique K-line combination, which is specifically manifested as: a significant large positive K-line appears in the market first, and then the market does not immediately respond or reversal, but shows a horizontal consolidation or slight adjustment of 5-7 small positive lines or small negative lines. The lowest prices of these small K-lines have not broken through the lowest prices of the large positive lines, forming a stable support.

This pattern combines the advantages of K-line pattern and time-period analysis, and uses the principle of market psychological failure to capture the accumulation process of bullish forces. By observing and analyzing the “single positive” pattern, traders can more accurately judge the market trend and find the explosion points of bullish popularity.

The “single positive does not break” pattern can be divided into three types: weak type, stable type and strong type according to different market performance.

The characteristics of the weak “single yang does not break” include:

1. The opening of high or flat opening or low opening fluctuates downward, and the lowest price cannot fall below the opening price of the big positive line;

2. When adjusting downward, the yin is more and the yang is less, and the trading volume gradually decreases to near the level the day before the start of the big positive line, indicating that the market may face direction choices.

Rustant type “single yang does not break” is manifested as:

1. After opening high or platform or low the next day, the return to the point where the big positive line cannot fall below 50%;

2. The quantity ratio is greater than 3, and the high opening range is usually between 10-50%;

3. In the adjustment, the shadow line on the K-line is not likely to exceed the closing price of the large positive line by 5 points, forming a box oscillation, and it is best to have more positive lines than negative lines; the trading volume shrinks slightly.

The characteristics of the strong “single yang does not break” are more significant:

1. The next day, the gap will be opened high without filling the gap, and the high opening range will be within 3%, followed by 5%;

2. Adjust the upper and lower shadow lines of the shape to no more than 5 points, forming a small box oscillation operation, and it is best to have more positive lines than negative lines;

3. The next day’s volume can remain flat or slightly higher than the large positive line volume, and the volume can remain flat or shrink slightly in the next three to five days.

When seizing the entry opportunity of the “single positive without breaking” pattern, traders should pay attention to the following points:

1. The larger the increase of the single positive K-line, the better, it is best to be greater than 5% or form a daily limit.

2. In the process of rising patterns, if the trading volume increases, you can consider intervention; otherwise, be cautious and wait for a clearer signal.

3. The finishing time after the big positive line is generally 5-8 days. When restarting again, you can intervene at the right time according to the increase in volume of the time-sharing chart.

4. When the 20-day moving average starts to turn upward, and the medium and short-term moving averages show a long arrangement, this is a necessary condition for entering the market.

The “single positive does not break” pattern has obvious characteristics and high operability, so it is highly praised by traders. However, in actual operation, it is still necessary to use flexibly and control risks in light of the actual market situation, and operate with caution in order to give full play to the greatest advantages of trading strategies.