After each plunge, the market often rebounds, followed by the test of oscillating sideways. After each rebound, it seems that the fate of a second bottoming out is inevitable. If this second bottoming out falls below the new low, it may indicate a deeper decline; but if it holds on without breaking, it may be the dawn of a reversal.
The same script will also be played out after a surge: after the first new high, the market will often pull back and rest, and then accumulate momentum to rise again. At this time, if it can break through the previous high, the upward momentum may continue; otherwise, it may face the fate of a reversal and decline. Such logic has been repeatedly played out in historical data, which makes people have to believe it.
Take the trend of a certain currency as an example. After the plunge, it ushered in the dawn of a rebound, but then fell into the vortex of a second bottoming out. This roller coaster-like market makes people's moods rise and fall. However, after careful observation, we found that this second bottoming out did not fall below the new low, which is undoubtedly a positive signal, indicating that the possibility of a reversal and rise is quietly increasing.
The current market is in a delicate stage of oscillating sideways, and the second bottoming out is underway, and the direction is not yet clear. At this critical moment, we must not be swayed by market fluctuations and lose our calm judgment. The rise and fall of the market are all supported by logic. We need to recognize the situation and ourselves.
Build a complete investment plan! Know when to buy and when to sell; choose investment targets that suit you and formulate clear strategies; at the same time, risk control must not be ignored. In this market full of variables, only by being fully prepared can you cope with it and seize opportunities. Friends who don’t understand, please click on my avatar and discuss the way of investment together!