How to Identify Profit Effect and Loss Effect
—Buy at the Start of Profit Effect, Sell Before Loss Effect Begins

Profit Effect

1. Number of Limit-up Stocks
   A key metric for short-term traders. Over 60 limit-ups indicate strong profit effect; below 60 signals weakening momentum.

2. Consecutive Limit-up Stocks
   High success rate in consecutive limit-ups reflects profitable momentum trading, boosting overall market sentiment.

3. Highest Space Plate
   The stock with the most consecutive limit-ups (e.g., 6) sets the benchmark. Its failure suppresses others; its success ignites rallies.

4. Yesterday's Limit-up Performance
   If most limit-up stocks fall the next day (negative data), avoid chasing highs—profit effect is collapsing.

5. Maximum Intraday Profit ("Earth to Sky")
   A stock rising 20%~40% in one day is rare but electrifying. Analyze its logic—it may spur broader rallies.

Loss Effect

1. Number of Limit-down Stocks
   Over 10 limit-downs signal severe loss effect. Note: Even 10 limit-downs hurt more than 60 limit-ups help.

2. Failed Limit-up Rate
   High failure rate means momentum traders are losing, crushing short-term sentiment.

3. Maximum Intraday Loss ("Sky to Earth")
   A stock dropping 20%~40% in one day often triggers chain reactions. Exit immediately.

Key Rules:

• Buy Signals: >60 limit-ups, rising consecutive limit-up rate, space plate breakout, "earth to sky" stocks.

• Sell Signals: >10 limit-downs, rising failed limit-up rate, multiple "sky to earth" stocks.