New Version, Worth Being Seen! #GateAPPRefreshExperience
🎁 Gate APP has been updated to the latest version v8.0.5. Share your authentic experience on Gate Square for a chance to win Gate-exclusive Christmas gift boxes and position experience vouchers.
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1. Download and update the Gate APP to version v8.0.5
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Key new features and optimizations
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Your fa
Retail investors fear most is being unable to judge during a sudden market plunge—whether it's the main force shaking out positions or a genuine decline. Actually, there is a classic pattern that can help you see all of this clearly, and that is the Golden Pit (also called the Treasure Basin in the market).
Recognizing the features of this pattern will prevent you from being harvested by the main force. First, after a long period of sideways consolidation, many people will focus on the upper resistance level and the lower support level. Suddenly, one day, the price breaks below the key support—this is called a breakdown decline. Subsequently, there are usually 3 to 5 days of rapid downward drops, although the decline isn't too extreme (generally within 20%), but during the decline, the trading volume gradually shrinks, eventually reaching extremely low levels, with market participation becoming very quiet.
This is the critical turning point. When the price begins to rebound, you'll see long lower shadows, doji stars, or bullish engulfing candles that swallow previous bearish candles—this is called the bottom of the pit. At the same time, the trading volume will gently increase, forming a typical "concave" volume pattern: high on both ends and low in the middle.
Then comes the rapid rebound phase. The price will quickly recover the previous decline, rising back to where it fell from, ultimately returning to the pre-breakout level to form the "mouth" of the pit. How long this process lasts entirely depends on the current market environment and the main force's chip layout.
This trading method is simple to say but requires thorough understanding of support levels, breakdowns, low volume, and concave volume patterns to truly grasp the main force's intentions.