Pay attention to the difference between “rebound” and “counter-attack”:

Counter-attack: Refers to a brief, minor technical upward movement in stock prices during a downtrend (especially after breaking through key support levels), aimed at confirming the previous break or decline, without changing the overall downward trend. Simply put, it’s like a MACD golden cross below the zero line that rebounds, encounters resistance near the zero line, and then the price drops again. This short-term unstable rebound is called an invalid rebound. The manifestation of such a brief rebound at this level is called a counter-attack. Therefore, counter-attacks are usually used to short at highs. In a bear market, most of the time after a big drop, when a rebound begins, I use the term “counter-attack” to describe it, distinguishing it from a “rebound.” This is a precise use of terminology.

Rebound: Refers to a relatively more sustained and stronger upward movement in stock prices after a decline, possibly triggered by improved market sentiment, better fundamentals, and other factors. It corrects the downtrend to some extent but does not necessarily mean a trend reversal. Simply put, it’s like an upward movement of MACD above the zero line, gradually rising with some continuity. This is considered a truly effective rally, usually seen in a bull market cycle.

Previously, I often compared “counter-attack” to a person running in water—no matter how hard they try, they can’t run as fast as on land. Because the resistance in water is much greater than in air. Here, “water” is equivalent to the zero line.