Breach (Breakout) is a term used in technical analysis, which refers to the rise and fall of price Resistance level (usually the previous high), or fall through support level (usually the previous low point). Price breakouts usually occur in Trendline Or when the price formation line breaks. And effective breakthrough is a word that people often say is hard to explain. Effective breakthrough should mean that after breaking through a certain support or resistance level, it will not return to the previous operating range. The "effective breakthrough" of individual share price means that the share price has risen to an important historical high in the previous three consecutive days, and the third day has closed above the historical high of 3%, which is called "effective breakthrough".
For example, if the historical high of a share price is 10 yuan, the trend of the share price is around 10.30 yuan for three consecutive days, and the third day is above 10.30 yuan, then the share price is an individual stock that has implemented "effective breakthrough" against the previous historical high of 10 yuan. If there is no sharp decline in the market in the future, the first target of the share price must rise to above 12.30 yuan before the dealer will reduce his position and buy "effective breakthrough" An individual stock can hold shares in the short term and the middle line to be raised. Sell at 20% target, i.e. around 12.30 yuan. However, some stocks will rise again after finishing around 12.30 yuan, so they can be flexible. Generally speaking, to effectively break through the previous historical peak and increase by 20%, we should be alert to dealer shipments, and retail investors should also sell for profits. Stocks that are not "effective breakthrough" tops are easy to be trapped in high positions.
Effective breakthrough classification
There are two situations of effective breakthrough: one is effective upward breakthrough Resistance level ； The other situation is to effectively break through the support position. The effective upward breakthrough resistance level generally refers to the closing price closing above the pressure level. But this definition is too general. The confirmation of effective upward breakthrough is usually regarded as effective upward breakthrough resistance level. There are usually the following conditions:
1. Make breakthroughs in a large scale.
2. The closing price should be at least 3 days, preferably more than 5 days Pressure level above. 3. The closing price is 3% - 5% higher than the pressure level. 4， Pullback The pressure level is supported, commonly known as pressure becomes support. 5. After the first breakthrough, the transaction continued to be active, with both volume and price increasing, and could not be exhausted.
Not all of these conditions need to be met. Sometimes only one is needed. The more conditions met, the stronger the effectiveness. Of course, if all of them are satisfied, it is only that the stock price is mostly far away from the original pressure level at this time, and even meets other pressure levels, so the actual guiding significance is much smaller. Therefore, the judgment of effective upward breakthrough faces the dilemma of accuracy and timeliness. Different people have different opinions. Only individuals can make timely judgments based on their own experience.
Effective downward breakthrough, the same as principle 。 
