There are three trends in the market: rising trend, falling trend, and consolidation trend.
In fact, it is very clear if you look at the market. For example, the 4-hour and daily lines are mostly in a consolidation trend. When the bear market falls in the general direction, it will consolidate and accumulate strength when encountering important support for a better decline. When the bull market encounters pressure, it will consolidate and accumulate strength for a better rise.
If the bear market keeps falling and the bull market keeps rising, then no one will lose money, and the market will never have such a situation, unless it is a capital market, which keeps rising in order to trap people.
The consolidation trend is the most boring time and the most challenging time for human nature.
Especially after a wave of decline, it enters consolidation, watching the funds in the account become less, and then it fluctuates back and forth. It is not easy to rebound and recover some blood, but it goes down again and returns to the lowest point.
Just like this period, the decline stopped on March 20, and it rebounded a while ago. It seemed that the account had improved, but it fell again a few days ago and returned to its original position.
Many people can't stand such torture, coupled with some voices in the market, they are worried that there will be another big drop, and their accounts will shrink, so they start to sell at a loss.
Therefore, it is particularly important to judge the trend at this time. Only by judging the background trend and whether it is downward or upward after the shock, can we avoid confusion and panic due to the current fluctuations.
