1. During the early stage of the pullback, there was a contraction in trading volume;

2. Those with significant cumulative decline and sufficient risk release;

3. The stock price can effectively stabilize above the important moving average during a rebound.

Meeting the three criteria indicates a strong rebound and a certain opportunity for short-term trading.

If a certain stock experiences a decline in volume, it indicates that the main force is fleeing in a panic, leaving a huge trapped market at a high level and becoming a resistance to future stock price increases. Even if such stocks rebound in the future, their space will be extremely limited.

And some stocks that have experienced an unlimited decline have rebounded relatively easily. Generally speaking, the larger the decline, the stronger the demand for rebound. This can be divided into two situations: if the stock price drops sharply, with a short-term decline of about 20%, it can be considered that a rebound will occur soon, while for stocks that are slowly declining, the rebound amplitude is relatively larger. Generally, a rebound with a decline of 40-50% or more is more credible. Whether the stock price can stabilize above the important moving average is an important basis for judging the strength of the rebound.