Most people see a support level break and immediately short, but the market that can truly continue downwards is not because it has 'broken,' but because after breaking, it can still hold and even be re-accepted by the market as a new structural benchmark.
The chart shows four classic structural variants:
The first type is a weak rebound after breaking, unable to return to the support level, indicating that sentiment is completely leaning towards bears, presenting an opportunity to enter in the direction of the trend;
The second type shows a rebound, but produces a long upper shadow bearish candlestick, indicating that selling pressure above still exists, so the entry point is later but confirmation is stronger;
The third type is a rebound back to the support area, equivalent to '踩确认' (踩确认 means stepping on confirmation), where buyers show obvious counteraction, suitable for betting on a reversal;
The fourth type appears to break but is actually a false break + engulfing, regaining the original support and breaking through the resistance level, signaling a stronger rhythm.
A break is not a signal; what happens afterwards is.
The structure either continues in the direction of the trend or rebounds quickly, and the real entry opportunities are hidden in the secondary actions after this break.
