The price breaking below the lower Bollinger Band is a signal to enter short positions, but no market can sustain a one-sided downward trend forever,
nor can it maintain a one-sided upward trend indefinitely; both bullish and bearish energies will experience periods of insufficient momentum.
So when will a temporary low occur? When does a downward trend stop? At this point, MACD comes into play. When the price repeatedly breaks below the lower Bollinger Band, as long as there is no bullish divergence between MACD and price, it can be assumed that the downward trend still exists, and short positions can be held continuously.
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When the price again breaks below the lower Bollinger Band and MACD and price exhibit a bullish divergence, I generally reduce my short position; if the price breaks through the middle Bollinger Band, then I can liquidate completely.
By analyzing the bullish divergence between MACD and price, combined with the relevant techniques of the Bollinger Bands, it becomes quite easy to identify potential temporary lows or even reversal points during a downtrend.