The condition for the "double bottom" pattern to emerge is that the price has first undergone a round of decline, followed by the appearance of two low points. We must operate cautiously when the "double bottom" pattern appears at other positions in the market to avoid unnecessary losses. This is a classic pattern before the market starts - the "double bottom" pattern, and its counterpart is the "double top" pattern. The operational method of the "double top" pattern is exactly the opposite of the "double bottom" pattern, which will not be elaborated on here.
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At the beginning of the decline, a typical top candlestick pattern appeared - the "head and shoulders top" pattern (at the circled position).
The "head and shoulders top" pattern is also a typical candlestick pattern before the market starts. It serves a similar purpose to the "double bottom" and "double top" patterns, as they are all reversal patterns indicating a market peak or bottom.
After a round of price increase, a phase high point appeared, followed by a decline, and then another increase that broke through the previous high point, reaching a maximum of 101.260. Afterward, the price declined again, and after breaking below the previous secondary high point, it rose again near the previous secondary high point, facing resistance. At this point, the three high points formed the top "head and shoulders top" pattern. Generally, if a "head and shoulders top" pattern appears at the top, as long as the price breaks below the neckline of the "head and shoulders top" pattern, it will likely decline. In other words, the appearance of the "head and shoulders top" pattern at the top is one of the important signs of the start of a downward trend.