1. Market bottoming can be divided into rapid bottoming, volatile bottoming, and sideways bottoming.
2. For individual stocks, a rapid bottoming out is still possible, but for the entire market, the probability of a rapid bottoming out is very low, unless there is a sudden major positive news. At this point, we can make judgments based on the divergence and bottom deviation of the downward trend. Usually, the strength of this downward trend is not as strong as the previous one. At the same time, after the price reaches a new low, there is a clear bottom deviation, which we often see as an acceleration to catch up with the bottom.
3. The most common situation is to build a bottom through volatility, which means accumulating strength at a certain position over time. At this time, there are some small themes or partial market trends with small fluctuations in the market, inactive trading, and relatively low trading volume. Once there is a sudden increase in volume, rise or fall, and rebound after deviation, it is a sign of successful bottoming and beginning to rise.
4. Another common scenario is a sideways bottoming or circular bottoming, which is usually due to the lack of market themes, insufficient popularity, extremely inactive trading volume, continuous decrease in trading volume, and a sudden increase in volume after trading volume. This is usually a bottom rebound.
It is not recommended to buy at a low price, taking advantage of the situation is the best strategy.