The low point of the contract price in the early stage (at the circle) was broken by a subsequent 'hammer candle'. One can see how strong this 'hammer candle' is, causing the market to drop to a low of 5286 points.
In actual trading, there is often a type of investor who rushes into the market at the first sign of a market crash, fearing they will miss out on the downturn's benefits. However, many markets have a very strong downward momentum when they break down, often giving the impression of a true breakdown. Yet, when investors hurriedly enter the market, it seems to counteract their actions, and the price slowly rises back above the previous low. There are certainly many investors who suffer such losses. When encountering this kind of market again, one must confirm that the breakdown is genuine before entering the market. If it is found that the price breaks below the previous low and then quickly returns above that low, it can serve as a basis for entering a long position, especially if the broken K-line represents a hammer candle indicating a bottom reversal.
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