Breakthrough is not difficult; the challenge lies in the 'pullback confirmation'.
The chart illustrates four common pullback patterns. Understanding these is key to determining whether the 'breakthrough is valid' or 'false breakthrough retracement'.
First: Support-resistance exchange pullback (easiest to understand)
After the price breaks through the previous high, the pullback confirms that this position has changed from resistance to support. This is the classic logic for trend continuation, with a clear entry point and a well-defined stop-loss logic.
Second: Pullback after trendline breakthrough (variant head and shoulders)
When the price breaks through a downward sloping trendline, the pullback to this trendline, if it stops falling, indicates that the control of the bears has been broken, and the bulls begin to dominate the structure.
Third: Support-resistance exchange pullback in a range (highest success rate)
After multiple oscillations up and down, breaking through the sideways structure, if the pullback again stops falling at the upper edge of the range, it confirms the previous oscillation consolidation and is suitable for entering with the new trend.
Fourth: Test after a converging triangle breakthrough (easiest to lose money)
Such structures have narrowing fluctuations, with sufficient energy accumulation. The pullback to the triangle's edge after the breakthrough is key to determining whether momentum continues; if it falls back inside the range, the pattern fails.
Overall, a breakthrough is not a signal; confirmation is the signal.
Breakthrough → Pullback → Hold → Momentum appears, this is a complete breakthrough trading logic.