Three short-selling signals under a bearish structure, the core is to wait for rebound confirmation, not to blindly chase shorts.
① Previous high resistance level: When the price rebounds to reach a previous high point, if there is stagnation or a volume reversal, this is the first signal to enter the market. At this point, the market attempts a counterattack but fails, and the bears organize a defense here.
② Second rebound confirmation: After a decline, there is another rebound, but it fails to break through the previous high, forming a clear 'lower low, lower high'. This rebound usually occurs on lower volume and represents the second opportunity to short under the structure.
③ Previous low breakout confirmation: When a previous low point is effectively broken, the trend is further confirmed. Waiting for a smaller level pullback is the last 'confirmation signal point' for shorting in the direction of the trend. At this time, trading leans towards being prudent, with a clear and defined stop-loss point.
The trend structure is symmetrical; how to short in a bearish structure is the same as how to go long in a bullish structure, just with the direction reversed, and the logic is exactly the same.