Do you know the eight stages of bull-to-bear transition?

Stage 1: Incubation period, early stage of rise. Top investors enter.

At this time, the market trading volume is flat and the mood is pessimistic. Investment experts analyze the economic situation and various technical indicators, predict that the market situation is about to change, and begin to gradually buy in advance.

Stage 2: Detection period, slow rise. Upper-middle investors enter.

Market transactions gradually recover slightly, and usually the low points of the decline during the recovery process are higher each time, forming a typical bottom-up trend on the technical side, attracting some experienced investors to enter.

Stage 3: Following period, accelerated rise. Middle-level investors enter. Funds enter the market, and strategic funds co-occur.

After a period of slow rise, the market trading volume continues to increase, and the market sentiment is high. There is good news, and funds enter the market.

Stage 4: Frenzy period, rapid rise. Retail investors enter bravely regardless of the consequences.

The technical side is usually a process of staying at the top, with a large-scale decline at the top, or a continuous formation of double tops or even multiple tops. Investment experts gradually sell out or wait and see, while retail investors continue to chase the rise.

Stage 5: Disillusionment period, starting to fall. Psychological struggle begins.

Market news is flooding. Investment atmosphere gradually cools down. This stage is also a period of short selling.

The market occasionally rebounds, but it is difficult to resist the downward trend. The rebound highs are lower each time, and each rebound is two steps back, forming a downward trajectory of technical indicators.

Stage 6: Disillusionment period, falling to the bottom. Panic selling.

Retail investors are completely desperate, and panic selling swarms out, exacerbating the rapid decline in prices. At this time, a large amount of negative news appears. This time indicates that the sideways trading at the bottom of the bear market is about to begin.

Stage 7: Light period, sideways consolidation, range oscillation.

Finally, it enters the sideways trading stage at the bottom of the bear market, reverts to the mean, and the industry is reshuffled.

Stage 8: The combination of the first and seventh stages. Enter the next bull-bear cycle.

This stage coincides with the early stage of the bull market and is the best stage for accumulating funds. Visionary and rational investors will buy low-priced high-quality currencies at this time and hold the currency for a rise.