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In a downtrend, moving averages often act as price resistance. Repeated price rebounds, yet prices remain trapped below the moving average, are a clear indicator of bearish dominance. At some point, the market accelerates downward, breaking through a long lower shadow, and buying power begins to take over. Prices then break through the moving average and stabilize on a pullback, signaling a potential trend reversal. Thus, moving averages alone are not signals; the truly valuable combination of "moving average position + candlestick pattern + pullback confirmation" is the key. Only when resistance is broken and held on a pullback does this level of support have practical significance. In other words, while monitoring moving averages is correct, it's not enough to simply focus on whether a breakout occurs. The real key lies in whether the market has achieved both a breakout and confirmation.

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