The arc bottom shape is a consolidation shape, which often appears in the price bottom area, which is a typical feature of extremely weak market. Its shape is like the bottom of a pot in a K-line diagram.
the formation of the round bottom pattern is because after a long period of price decline, the selling pressure of sellers gradually disappears, the energy of bears has basically been released, and there are several high-level deep positions. Due to the excessive price drop, we have to change our business strategy and continue to hold positions for a long time. However, because it is difficult for buyers to gather interest in a short period of time, the price cannot rise. At this time, the price can only rise if it stays at the bottom for a long time, and the market is extremely weak. The position holder is unwilling to cut the meat, the bulls are unwilling to intervene, the price is stuck and the amplitude is poor. At this time, the price will form a round bottom shape, which is the "dormant period" of the price.
under the arc bottom pattern, the price is extremely dull because both parties are unwilling to actively participate. This period of time seems to be very long, and the amount in form is very small. The circular bottom shape is usually the sucking area of large investment institutions. Because of its long hype cycle, after the completion of the circular bottom shape, its rising range is also amazing. If investors buy in the form of curved bottom, they should pay attention to the earthquake positions of large investment institutions on the platform before opening. After the completion of the curved bottom shape, the price will attract a large number of retail investors to buy up in the early stage, which will increase the burden of large investment institutions in the later stage. Therefore, large investment institutions will consolidate prices again, form a platform, sort out a number of hot money chips and short-term customers, and then raise prices substantially. In the process of rising prices, large investment institutions continue to use flags and wedges to adjust the rising angle and continue to rise. Therefore, the shape of the arc bottom can be described in some way as the darkness before dawn. Formally, the price seems calm as water, but in fact, waves of surging waves are brewing.
The arc-shaped bottom usually appears in the long-period trend between transitions. From February 1996 to the beginning of 25, the arc-shaped bottom shape constructed by gold prices for nine consecutive years began a rapid upward trend after the breakthrough was confirmed to be effective in the second half of 25. Because of the effectiveness and long periodicity of the arc bottom, we have reason to believe that this is the turning point of the great bear market that lasted for 2 years from 198 to 2, and there will be a corresponding bull market.