Explanation of the Stock Selection Technique Based on "Neckline Volume Breakout"

　　The "Neckline Volume Breakout" technical pattern is a stock-picking technique frequently used by short-term traders. So, what exactly is this pattern, and what are its key operational points? If you're unfamiliar with it, today, the analysts at Winner Wealth Network will provide a detailed explanation.

1. Overview

　　What is the "Neckline Volume Breakout"? It refers to a pattern where a stock surges with high trading volume near the neckline resistance level. When the trading volume exceeds the highest volume recorded at previous neckline highs—but the price has not yet broken through the neckline—the stock consolidates with reduced volume below the neckline. This scenario presents an excellent short-term buying opportunity, often yielding unexpected gains in the near term.

2. Key Features of the Pattern

　　When the "Neckline Volume Breakout" pattern appears, the stock price consolidates with lower volume below the neckline. Before the pullback, the price movement should be stable, with a healthy K-line formation and a well-maintained moving average system. The duration of the pullback varies—sometimes lasting two to three trading days, other times up to a week.

3. Operational Guidelines

　　Investors can buy when the price rebounds after completing the pullback. If the price bottoms out and rises with supportive trading volume, it signals a short-term buying opportunity. Alternatively, traders may consider buying during a pullback to the 20-day moving average or when the price breaks above the pre-pullback high.