After the market fell rapidly. When the market encounters a sharp decline, it is often accompanied by emotional selling behavior of investors. However, after experiencing such a sharp decline, prices usually show a rebound trend, and the low point that appears at this time is precisely the perfect opportunity to buy the bottom. Because the excessive decline of the market often causes the price to deviate from its actual value, and after the emotional catharsis, the market will gradually return to rationality, and the price will also rise accordingly.
Consolidation after a strong big positive line. Once a strong big positive line appears in the market, if it is followed by a continuous small positive line or a cross star pattern, it usually means that the market is in the bottom area for consolidation.
In this case, the possibility of a subsequent rebound is relatively high. The big positive line indicates that the market has a strong long-term force in the short term, and the subsequent consolidation pattern is that the market is digesting the previous gains and accumulating energy for further rebound.
The bottom area has a large volume limit. When the price is in a low area, if there is a large volume limit, it usually indicates that the buying power is extremely strong, and the signal of a market rebound is very obvious. Large volume indicates that a large amount of funds are actively pouring into the market, while the daily limit shows that bulls have an absolute advantage. This strong market performance often indicates that prices are about to rebound.