We can verify bottom divergence through indicators such as MACD, KDJ, and RSI (Relative Strength Index). Taking the MACD indicator as an example, the DIF line has also formed two troughs, and the trend line connecting these two troughs is directed upwards, which is in divergence with the direction of the price trend line, indicating that it has fallen too far, and the probability of a reversal is increasing.
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This is a typical bottom pattern, and bottom divergence often occurs when the W-bottom is tilted downwards. When the second trough of the W-bottom is lower, the length of the lower shadow of the candlestick in the second trough can indicate the market's willingness and strength to restore the upward trend.
If a long lower shadow is formed, it indicates strong support at low levels, increasing the probability of forming a W-bottom. If a long solid bearish candlestick is formed, it indicates that selling pressure has not been fully released, and a failed W-bottom may form.