When the market enters the resistance zone, it usually does not reverse immediately, but rather goes through a process of "gradually diminishing momentum." This process can be described by a typical three-phase deceleration model:

First, we will see a significant upward trend, which reflects that the inertia of the original trend is still ongoing. At this stage, market confidence remains strong, and the buying power is evident.

Next, we enter the second phase. Although prices may continue to hit new highs, the strength of the rise is clearly weakening, as indicated by the shorter K-line bodies. This means that the buying momentum is starting to fade, and the market sentiment is beginning to change subtly.

Finally, there is the third stage, typically characterized by a high opening and a low closing, leaving a K-line pattern with a long upper shadow. This indicates that the bullish strength has begun to exhaust, and the willingness to chase higher prices has significantly weakened. Market participants lack confidence in continuing to push prices higher.

It is worth noting that this formation does not directly imply that a market top has already formed, but it is indeed an important warning signal before a potential top. For investors, this should not be simply understood as a bearish signal, but rather viewed as a cautious signal, indicating that we may need to adjust our strategies and reduce risky behavior.

In this market environment, investors may need to reassess their positions and risk tolerance. It may be worth considering gradually reducing the allocation to high-risk assets and increasing the proportion of defensive assets. At the same time, it is important to remain vigilant and closely monitor market changes to prepare for potential significant fluctuations.

Overall, understanding the changes in market momentum is crucial for formulating wise investment strategies. By observing this three-phase structure deceleration model, investors can better grasp the market rhythm and be well-prepared before the turning points in the market arrive.