1. When the crude oil price has not broken through the bottom or top of the previous period, it must not be judged that the general trend or the small trend has changed prematurely. When the market is bullish, the price of crude oil will rebound quickly, and the decline will not be great, forming a double bottom or multiple bottoms above the bottom. But once it falls below the original bottom, it means that the price of crude oil will fall to a lower point, and some important rebounds will occur.
2. When there are double tops or multiple tops again, but the price has not risen above the original top, even a bull market should not enter prematurely. Once the price rises above the original top, before it falls back, the price will often show obvious signs of rising, and it will be better if it enters the long state. All false price changes often appear in the final stage of bull market or bear market, and crude oil investors should trade after there is a clear bullish or bearish signal.
The length of time is an important way to judge whether the general trend has changed. The specific law is that after a period of time (that is, at the depression stage), the depression stage falls back for more than the longest time before, and then the general trend often begins to change.
4. In the narrow trading range of crude oil, if the futures price of crude oil lasts for several weeks or months, the crude oil price breaks through the original bottom or top, which largely means that the general trend has changed. And the longer you stay in this long and narrow interval, the greater the change will be after you break through this interval.
It is necessary to follow the law of market development, formulate a scientific and reasonable investment plan, and get the maximum benefit from investment.