Core Viewpoint - The article discusses a classic case of stock movement, highlighting the importance of technical analysis and market psychology in investment decisions [1]. Group 1: Technical Analysis - The stock showed a high-value breakout when it first surpassed its yearly high, followed by a volume contraction during the pullback, indicating a potential buying opportunity [3]. - A clear 2T structure was identified during the price action, with the third T being less noticeable but evident on a 60-minute chart, demonstrating a classic VCP (Volatility Contraction Pattern) formation [3]. - The article emphasizes a pivotal point signal at the end of the 2T, which serves as an excellent entry point according to Mark's theory, suggesting that investors should consider entering at this juncture [3]. Group 2: Market Psychology - Despite clear technical indicators, many investors hesitate to enter at the pivotal point due to fear of heights and a lack of confidence, which is rooted in basic psychological instincts [3]. - The article points out that even with strong fundamentals and favorable industry logic, investors often struggle with their beliefs and fears, leading to missed opportunities [3]. - It critiques the tendency of investors to focus on low-quality stocks while ignoring high-potential opportunities, highlighting the importance of having faith in one's analysis and the underlying fundamentals of a stock [3].

Core Viewpoint - The article emphasizes the importance of price action analysis as a foundational method in technical analysis, suggesting that price contains all necessary information for trading decisions [1]. Group 1: Price Action Analysis - Price action analysis, also known as price behavior analysis, does not consider trading volume and focuses solely on price changes [1]. - The article discusses the evolution of price action analysis to include volume, leading to a more comprehensive approach known as volume-price analysis [1]. - The O'Mahony system incorporates volume-price analysis but also adds elements of momentum and anchoring, which helps narrow down stock selection [1]. Group 2: Stock Selection Techniques - The article introduces specific extreme patterns for stock selection that are more stringent than those found in traditional literature [2]. - The first pattern, "Silk Thread Pulling the Cow," describes a scenario of rapid price increase followed by shallow pullbacks, characterized by shrinking volume [2]. - The second pattern, "Ladder Cloud Ascending," involves significant volume breakthroughs and shallow pullbacks, ensuring that certain price levels are not breached [5]. - The third pattern, "Floating Steps," is described as an ultimate form of VCP, requiring specific conditions regarding price fluctuations and volume [6].