The main force usually performs a key action—testing the market—before initiating a significant upward move. The most common pattern during this process is the "Immortal Pointing the Way," also known as the long upper shadow test. Many people have misconceptions about this pattern; not all long upper shadows are testing lines. Today, we will explain this thoroughly.

The main force tests the market at various stages. They need to assess the support strength below and gauge the selling pressure above. The core function of the "Immortal Pointing the Way" pattern is to test the strength of the selling pressure overhead, thereby determining whether to continue consolidating or to directly push higher.

The "Immortal Pointing the Way" and the "Shooting Star" look similar, but their fundamental difference lies in the intraday chart performance and the position of the stock price. The "Immortal Pointing the Way" generally appears during sideways consolidation at low levels or in the early stages of an uptrend. During the early trading session, there is a volume surge with a quick price spike, but the increase is limited, usually around 7%. Subsequently, the price gradually pulls back, ending with a slight gain at the close. On the daily K-line, this forms a typical long upper shadow—small real body with an upper shadow more than twice the size of the body. The strength of a bearish (down) candle is clearly weaker than that of a bullish (up) candle.

Details in the intraday chart are crucial. If the selling pressure is small at this point, you will see a volume-contracted decline, indicating strong support. Conversely, if there is a volume surge with obvious selling pressure, the market is likely to continue shaking out later.

To judge whether the test was successful, the most important indicator is the bullish (up) candle on the following day. This completes the logic of understanding the "Immortal Pointing the Way." Mastering this basic pattern can provide valuable insights for trading.