After the contract price fell below the middle band of the Bollinger Bands, we can see that the price repeatedly fell below the lower band of the Bollinger Bands, reaching a low of 1170 points but failing to make a new low again. We have previously discussed the characteristics of a downtrend, one of which is that both lows and highs are continuously shifted downwards. However, in the chart, when the price fell to 1170 points (in the box), the next low (in the circle) could not create a new low, indicating that the original downtrend could not continue.
The box marks the first bottom test, while the circle marks the second bottom test. How do we determine this? Firstly, the low of the second bottom test is generally higher than the previous low; secondly, after the second bottom test, the price can rise above the middle band of the Bollinger Bands.