The high points of the market trend are constantly being lowered. By connecting the two high points in the market, we form a straight line, which gives us a downward trend line. As long as the price remains below the downward trend line, the trading strategy should focus on short positions, and the direction of the trend line indicates the direction for entering trades. When the price breaks upward through this downward trend line, the downward trend may potentially turn into an upward trend, or it may drop again after a period of consolidation.
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Whether it is a downward trend after rising to the top or an upward trend after falling to the bottom, a certain amount of time is needed for the formation of a top or bottom to signal a reversal in the market. It is not merely based on the breakthrough of the downward trend line or the breakdown of the upward trend line to determine whether the market has reversed. The breakthrough of the trend line is only a signal for a potential market reversal, and whether the market can truly reverse still requires further observation of future trends.