What is the significance of the inflection point of the price

To study the inflection point of the price, we must first study the reasons for the inflection point. The reasons for the inflection point are basically classified into two types.

The first type: the current price performance is strong, leading the direction directly to a wave of market conditions, forming an inflection point

The second type: a certain resistance in the past was strong, and the current price was controlled to continue to push in the original direction, forming an inflection point

How to distinguish and utilize these two inflection points in real trading is another critical issue. In trading, everyone often regards a price inflection point (high and low points) as a reference for a resistance breakthrough. , can play a certain effect. At this time, it is usually the first behavior. The price inflection point itself, the starting point of this fund is a strong behavior, so when the price breaks through, it can be used as a good reference , but if you encounter the second behavior, you will break through this inflection point, which has no important meaning, but will create a false appearance. This is what everyone often calls a false breakthrough behavior. In terms of breakthrough and false breakthrough, a breakthrough is a breakthrough. We regard the behavior of a breakthrough as A. After A breaks through an inflection point, new funds will be added. We define new funds as B. After the new funds are added, it will be There will be three situations:

The first one: the new capital B does not recognize the behavior of A, and its strength is stronger than that of A, it will form a price reversal, such as the common V-turn trend, this is a good trading opportunity

The second type: the new funds do not recognize the behavior of A, but the strength is weaker than that of A, and A will continue his promotion rhythm, directly showing that A is strong, which is also a trading opportunity. ​

The third type: the new capital B very much approves of A’s behavior, and agrees with A’s direction, the price will continue to continue​.

The above situation is a common trading method that the price inflection point is strong and broken. What will the other one be like? Welcome everyone to add discussion​