While the market is declining, both trading volume and open interest are continuously increasing. The increase in trading volume means that both the bulls and bears are entering the market, but the bears are more resolute in their entry than the bulls, indicating a stronger belief in the continued decline of the market.
☕
At the same time, the bulls are also unwilling to give up, trying to counterattack by buying at low levels, which increases the probability of a V-shaped reversal occurring. Investors can initially follow up with short positions, but if the market has already completed five waves of decline, the possibility of a trend reversal becomes significant. Therefore, it is essential to accurately assess the current position of the decline within the context of wave theory.