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.
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ContractCollectorvip
· 2h ago
I've heard of the Golden Pit theory quite a few times, but when it comes to critical moments, it's still easy to be deceived... The area of extremely low volume is indeed a good reference point.
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GateUser-26d7f434vip
· 10h ago
Basically, it still depends on trading volume. The old trick of seeing the bottom volume and the bottom price has fooled me many times.
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shadowy_supercodervip
· 10h ago
Golden pit? Why do I keep falling into the trap every time? It feels like the main force is specifically targeting me.
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ApeWithNoChainvip
· 10h ago
Golden pit, I've heard this explanation many times, but when it comes to critical moments, I still get confused by the crashes. The problem is, whether the support level breaks or not is really hard to see clearly.
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ZKProofEnthusiastvip
· 10h ago
The Golden Pit theory sounds good, but when it comes to actual operation, it's still easy to fall into traps. The moment of rebound from a low volume often catches people who have already entered halfway.
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PretendingToReadDocsvip
· 10h ago
The Golden Pit theory sounds great, but why do I keep falling into the trap every time?
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