In trading, one method is the large volume trading method.

It means: at the bottom of a downtrend, there is a particularly large bearish candle, you can go long; at the top, you look for short opportunities.

In the boxed area of the chart, there are two instances of high volume, therefore based on the volume-price relationship, this position is bullish, especially since the subsequent consolidation is also so.

This position can be seen as a phase bottom, the probability of breaking below is low (hopefully I'm not wrong).

The blue arrow MACD is also in a consolidating posture, with golden crosses and dead crosses intertwined, making it difficult to distinguish.

This indicates that the support at this position is relatively strong, and if a significant decline is to occur, it must be accompanied by a new major negative catalyst.

Everyone can also see that some big players have been continuously buying recently, so we actually do not need to panic too much.

A drop only gives us a better entry position.