📈K-line Short Course: Trend Initiation and Confirmation

When analyzing an upward trend, the first breakout point and the first pullback support point are crucial. In a healthy upward market, they together form the "skeleton" of the trend. Understanding them can help you better gauge the "quality" of the trend.

First Breakout Point (A): Indicates that the price has broken through the original equilibrium, with new buying pressure beginning to dominate the direction. It defines the start of a new upward trend and the initial momentum.
First Pullback Support Point (B): The position where the price first retraces and then rebounds, confirming the validity of the support. It proves that the breakout area has shifted from resistance to support, serving as the first effective confirmation of the trend.

Conclusion:
If the price subsequently falls below the first pullback support point, it means the initial upward structure has been broken.

Simple Application:
In practice, you can regard the first valid pullback support point as the "long-short line" of the trend. When the price is supported above this level, the trend is maintained, serving as a basis for adding positions or holding;
However, if the closing price effectively breaks below this point, it should be seen as an important warning signal of trend weakening, prompting you to consider reducing positions or exiting to avoid greater risks.

Applicable to any time frame—whether monthly, weekly, or 1-minute, 5-minute K-lines. The key is that you must look at multiple time frames simultaneously to accurately identify the trend.

❗️Core: Large time frames set the direction, small time frames find the timing
Large time frames (such as 1-hour, 4-hour): Determine the main trend direction. The structure here (e.g., “first pullback support point”) is stronger and more important.
Small time frames (such as 5-minute, 15-minute): Are waves within the larger trend. Use them to find specific entry, exit, and fine-tuning points.
⚠️Note: When signals from different time frames conflict, follow the larger time frame
The 4-hour chart shows an intact upward structure, but the 15-minute chart breaks below its “first support point.” This usually only indicates a correction within the smaller trend, a pullback in the upward trend. At this point, your strategy might be to wait for the 15-minute chart to form a new bottoming structure before entering, rather than immediately turning bearish.

This simple rule can help you maintain discipline in complex fluctuations and trend trading.