The second bottoming out method means that when the price bottoms out for the second time after the low point appears, it does not fall below the lower track like the first bottoming out. When the price effectively stands above the middle track, we can think that the price has successfully bottomed out in stages, and the previous low point may be the staged low point. When the price stands on the middle track, it is the time for investors to enter the market and go long.
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Technology is not absolute. It does not mean that the market we want will definitely go out as expected when a specific form appears. It is just that after a specific form appears, the probability of going in the expected direction is higher. Therefore, we must look at technology rationally. For example, the chance of winning of a certain entry method is 60%. When this specific entry method appears 10 times, there may be 6 profits and 4 losses. Even if the profit ratio is 1:1, we can still make a net profit of 2 times with this method after 10 times. Professional traders may have dozens or even hundreds of transactions every day. It is impossible to have a 100% chance of winning. As long as the entry method used has a high chance of winning, it is necessary to persist in doing it for a long time to make stable profits.
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The contract price fell below the middle track of the Bollinger channel and then went down all the way, falling to a minimum of 3842 points, and fell below the lower track of the Bollinger channel. In many cases, the price touching the upper or lower track of the Bollinger channel is not a signal of a market turning point, but a signal of adding positions.
It is difficult to tell whether the market has reached its peak or bottom using only a Bollinger channel indicator. The Bollinger channel and MACD indicators should be used to determine the possible peak or bottom of the market.
After the price fell below the lower track of the Bollinger channel, the first bottoming occurred (in the box), and then the price rebounded. When the price tried to bottom out for the second time (in the circle), it did not fall below the lower track of the Bollinger channel. As long as the price can stand on the middle track, it is the basis for us to enter the market and do more.