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Breaking the trend line: When the price effectively breaks below the upward trend line (top) or breaks above the downward trend line (bottom), it is the first signal of trend weakening.
No new highs/lows: The price rebounds (top) without surpassing the previous high, or pulls back (bottom) without falling below the previous low, indicating the original trend momentum is waning.
Breaking the previous low / breaking the previous high: The price falls below the previous retracement low (top) or exceeds the previous rebound high (bottom), confirming a reversal.
The core logic is "don't guess, wait for confirmation," with three layers of signals filtering out false breakouts, waiting for the market to move on its own before following, especially suitable for swing and trend trading.