Limit-up is never the end of a story; rather, it marks the beginning of a new one. The real opportunity often lies in the pullback after the limit-up.

Why is that? Because the pullback after a limit-up is essentially the main force clearing out floating shares and paving the way for the main upward wave. The key is how to identify which pullbacks are "end of shakeout signals" and not trap exits.

Here are three pullback patterns that are particularly worth paying attention to:

**Pattern 1: Gentle pullback + declining volume**
After the limit-up, the stock enters a slow pullback, with trading volume gradually shrinking to about 50% of the average volume on the limit-up day. Most importantly, the price stabilizes around the 20-day moving average—this line is an important support level for the medium-term trend. If it holds, it indicates that the main force has a clear defensive intention here.

**Pattern 2: High-level oscillation without breaking the initiation price**
The stock begins to adjust the day after the limit-up, but no matter how it pulls back, it does not fall below the initiation price on the limit-up day. Even if it briefly touches it, it can quickly rebound. What does this mean? There is sufficient support below, and the main force is holding onto the shares tightly. This reluctance to let low-cost chips go is precisely a bullish signal.

**Pattern 3: Decreasing volume + no new lows**
A wave of pullback occurs first, followed by a brief rebound and a second adjustment. But this time, the trading volume is even thinner than during the first pullback, and the price has not created new lows—this indicates that the floating shares have been mostly cleared out.

If all three features are observed during the pullback phase after a limit-up, it is a strong signal that the main force is finishing their shakeout. A limit-up represents the initial willingness of the main force to enter, and such pullback patterns are quite common in the market. Mastering these pattern characteristics can help you avoid chasing and selling at lows, and better understand the market rhythm.