反弹模式 Typical Technical Rebound Pattern justbuy2022-10-20 22:15:34

Technical rebound usually includes a b c three waves.

Wave "a" could be simply interpreted as part of buying by MM at bottom (so-called price pumping up). Volume-wise during wave 'a", the higher, the better. 

Wave "b" contains further three smaller waves which could be interpreted as house-keeping work by MM, happening after completion of wave 'a", purpose of which is to intentionally create a chaos by pumping prices up and down to make paper profit of traders disappear quickly two times so the weak traders will sell when the prices reach around high of wave "a" again to avoid "losing" again. Volume-wise during wave 'b", the quicker the volumes diminsh, the better. (Unfortunately, I was one of the weak traders in Jun to Aug 2022 rebound. That's why it is so important to always learn the lessons, summarize and remember the teachings like in this post to avoid similar mistakes in the future.)

Wave "c" is a real up move after completion of wave "b" to pump price up significantly for purpose of taking profit by MM.

After completion of wave "c", the market will resume the downtrend and fall below the previous low due to joint selloff by MMs and traders.

Refer to technical rebound examples from Jun to Aug 2022 (actual) and this time (forecast).