How do you view frequent highs and lows? The fundamental reason is: after the plunge, the market buying and selling depth is thin. During the price rebound process, slightly larger buy and sell orders will cause drastic price fluctuations.
Emotional reasons: players are in a state of panic and uncertainty:
1. Once the price rebounds slightly, greed drives more people to buy, pushing the price up;
2. Once the price falls slightly, fear drives everyone to sell, causing the price to fall.
Other factors: quantitative trading, especially high-frequency trading!
In summary, the market's sensitive nerves have not really relaxed! The price has not risen or fallen substantially, indicating that the strength of buyers and sellers is balanced, waiting for the balance to be broken, and the price behavior is naturally a new signal for breaking!
That is, the key price level shows obvious rising behavior, which means that the consensus of buyers is gradually increasing, and everyone is gradually getting out of the state of fear!