How to judge the end of a continuous decline?
There are many ways, but in order to find a relatively good entry point, it is generally necessary to make assumptions in advance after there are some characteristics in the market, and you cannot wait for a few months to confirm that the decline is over. Here are some of my commonly used assumption judgment methods
1: A sudden acceleration of decline after a long-term shock of 1-3 months is followed by a new sideways shock, and a slightly new low in the shock. That is, a flash drop after a long-term shock + a slight new low after a long-term shock. A flash drop after a long-term shock + a slightly new low after a new shock. After entering the market, the stop loss can be the recent small new low
2: A long-term daily head and shoulders bottom (1-2 months) appears after a sharp decline. After entering the market, the stop loss can be the right shoulder low
3: The daily decline has a second retracement without breaking the new low, which is similar to a double bottom. The daily level callback in the upward trend has a second retracement without breaking the new low, and the positive line after the second retracement enters the market. After entering the market, the stop loss can be the second retracement low
In addition, since the market assumption is made in order to pursue a better entry position, the stop loss must also be brought well. At the same time, these methods need to be used in bull markets and volatile markets, that is, they cannot be used when the K-line is below the moving average.