This chart reveals a crucial yet often overlooked principle: "Don't look at the shadows for a breakout; look only at the closing price."
1. Misconception: A shadow breakout ≠ a valid breakout
As the chart shows, the price repeatedly "pierced" key levels but failed to close above them, ultimately falling back. This is a typical false breakout and the root cause of many people getting trapped when they chase high prices.
2. Confirmation: The real body of the candlestick > the shadow probe
A truly worthy trading signal must be a candlestick body firmly above a key level, indicating capital approval and price stability. This structure is supported by the probability of "sustainability."
3. Strategy: Waiting isn't about missing out, it's about screening
Waiting for closing confirmation may seem conservative, but it's actually a core operating principle for filtering out noise and avoiding false moves. In the early stages of a trend, missing out on a single gain isn't a big deal; misjudging the direction is the most costly.