What is a false breakthrough? How to distinguish false breakthroughs? False breakthroughs refer to false K-lines and patterns, and the direction guidance signals they reflect are completely opposite to the direction of the market outlook. How false breakthroughs in the foreign exchange and precious metal markets are generated is an unanswerable question. There is no such thing as the foreign exchange and gold markets. Makers, false breakthroughs should be understood as the collective trend of the market, or the extreme reversal of both long and short parties in a short period of time.

The term false breakthrough first appeared in the securities market, and there are many large institutions and bookmakers in the securities market. Deliberately creating false breakthroughs to allow retail investors to move the car, and the bankers to profit or escape. In fact, there are also false breakthroughs in the foreign exchange and precious metals markets. Carefully observe K-lines, averages, indicators, etc. through technical analysis. Different from the securities market, securities The market is mostly judged based on the size of trading volume and buying and selling power. However, since there is no concept of trading volume in the foreign exchange and precious metal markets, the probability of false breakthroughs is higher, and the concealment and fraud in the trend make it difficult for investors to judge.

What is common in the foreign exchange and precious metal markets are false breakthroughs, which is what we call false breakthroughs and true reversals as the saying goes. Even if there is a sharp decline in the reverse direction after an upward break, it can also rise instantly after a downward break.

The example picture is an example of an instant reversal of an upward breakthrough. In the picture, after the trend breaks through a relatively important resistance position in the early stage, it rises rapidly in the short term. Usually this rapid breakthrough first brings a very clear purchase transaction to investors. signal (standard breaking operation method), or a second purchase at the lower support position. However, false breakthroughs often cause rapid pressure in the opposite direction, and the price quickly returns to the previous resistance level in a short period of time, and begins to rise sharply. Reverse decline, a downward trend occurs in the opposite direction, and buyers who make short-term exceptions will lose all their money and stop losing.