Once the market enters a downtrend, the most common judgment methods are not limited to one, but there are multiple signals to refer to.
Trend lines and moving averages are confirmations of patterns. When the price continues to operate below, it indicates that the bears are in control.
Support and resistance emphasize structural aspects more. When rebounds are repeatedly hindered in the previous low range, it indicates weak buying pressure.
The death cross is a typical indicator signal where the short-term moving average crosses below the long-term moving average, indicating that the downtrend is likely to continue.
These methods do not exist independently, but rather corroborate each other. Truly high win-rate scenarios are never determined by a single signal, but rather when trend lines, moving averages, structures, and indicators all point to the same conclusion, only then can a falling trend be considered confirmed.
In other words, judging the trend cannot rely on a "glance," but should form a "closed loop" by cross-validating with multiple methods.
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Once the market enters a downtrend, the most common judgment methods are not limited to one, but there are multiple signals to refer to.
Trend lines and moving averages are confirmations of patterns. When the price continues to operate below, it indicates that the bears are in control.
Support and resistance emphasize structural aspects more. When rebounds are repeatedly hindered in the previous low range, it indicates weak buying pressure.
The death cross is a typical indicator signal where the short-term moving average crosses below the long-term moving average, indicating that the downtrend is likely to continue.
These methods do not exist independently, but rather corroborate each other. Truly high win-rate scenarios are never determined by a single signal, but rather when trend lines, moving averages, structures, and indicators all point to the same conclusion, only then can a falling trend be considered confirmed.
In other words, judging the trend cannot rely on a "glance," but should form a "closed loop" by cross-validating with multiple methods.