The 'Trend Not Dead' Relay Strategy of Rapid Surge with Increased Volume, followed by a Pullback with Decreased Volume
Logic:
During a wave of rising prices, a rapid surge accompanied by increased volume indicates that funds are genuinely entering the market; subsequently, a pullback with significantly decreased trading volume represents merely profit-taking without the main force exiting the market.
Approach:
Surge phase: increased volume
Pullback phase: volume decrease ≥40%
Pullback does not break previous breakout level
Go long at the end of decreased volume pullback
Stop Loss: Break below previous breakout level
Core: Increased volume surge, decreased volume retreat = healthy trend.
