The price of this contract has been declining and has reached a temporary low point (indicated by the circle). We immediately draw a horizontal line at this low point. When the price falls below this low point, dropping to as low as 3507 points, it quickly rebounds above the previous low point, which we use as a basis to enter a long position. At the same time, a typical bottom reversal candlestick pattern 'Morning Star' appears at the 3507 low point, further proving that this drop may be a false breakdown. In actual trading, as long as investors notice that the price breaks above the previous high or below the previous low and can quickly return to the original high or low, we can respond using the 'false breakdown short entry method' or 'false breakdown long entry method'.
