What does flat bottom mean? Flat-bottomed k-line diagram

In the falling market, when the "lowest points" of several K-lines are basically the same, a flat bottom shape is formed. Let's talk about what flat bottom means first.

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1. What does flat bottom mean?

Flat bottom: in the process of price decline, the short positions that push the price down gradually dry up, and the buying below the market continues to appear, and the price rises due to the resistance of the seller's power at the same price. After two days (or several days) of short positions, the camp broke up. Then the bulls who push up the price take the initiative to attack, thus forming the bottom of the price operation, and the price may rise in the afternoon.

When a flat bottom is formed, the original holder holds an empty bill, so he can consider closing all the positions and wait and see, or temporarily closing part of the positions, so that "it is safe to leave the bag". Similarly, look at the trend of the third K-line (flat-bottomed 1 root), and determine whether the center of gravity moves up or down to determine its reversal significance.

If the market outlook breaks through the lowest price of this form, it may mean that the downward range is open. Therefore, this price has positive significance for setting a stop loss.

Second, the flat-bottomed K-line diagram