Step 1: Look at the trend! An upward trend is the premise

"The main force plays only in an upward trend! If the price is generally going down, then the decline may be a real breakdown, and even if there are consecutive bearish candles, don’t rush to catch the bottom (unless there is a volume spike; the larger the volume, the easier it is to find the bottom). But if it is a correction in an upward trend, then there is a possibility of 'washing the盘'!"

Step 2: Identify consecutive bearish candles! Three consecutive bearish candles are the signal

"Not just any few bearish candles can be called a washout. The main force needs to 'deceive investors', at least three consecutive bearish candles or more must be created to make retail investors panic. If there are only one or two bearish candles, the strength is not enough, and it won't scare anyone away～"

Step 3: Pay attention to trading volume! A reduction to 1/4 is crucial

"Here comes the key! Find the 'highest trading volume' of this wave of increase, and then look at the volume during the consecutive bearish candles— it must be below 1/4 of the highest volume! What does this indicate? The panic selling is almost over, no one is selling anymore, and the main force has 'cleaned up'!"

Step 4: Wait for the breakout! A strong bullish candle is the entry point

"Simply having reduced volume and consecutive bearish candles is not enough; you must wait for the 'confirmation signal': a strong bullish candle must appear, and the closing price of this bullish candle must break through the highest price of the previous reduced volume bearish candles! This indicates that the main force has finished washing, and they are about to start pulling up; this is the best time for us to enter the market!"

"Additionally, a detail to note: during the consecutive bearish candle process, the smaller the bearish candle body and the more the volume shrinks, the more it indicates that 'the decline has no strength, and the panic selling is gone', making the success rate of this washout even higher!

Also, remember an old saying: Position determines nature. The volume-price relationship at different trends and stages must be analyzed flexibly and cannot be memorized rigidly～