First, through bottom interval analysis
When the price of crude oil has not broken through the bottom or top of the previous period, crude oil investors must not draw the conclusion that the general trend or the small trend has changed prematurely. When the market is bullish, the price of crude oil futures will rebound quickly, and the decline will not be great, forming a double bottom or multiple bottoms above the bottom. But once the price of crude oil falls below the original bottom, it means that the price of crude oil will fall to a lower point before some important rebound occurs.
Second, through the top interval analysis
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. Sweet dreams, sweet dreams. All virtual and real price changes often appear in the last stage of a bull market or a bear market. Investors should trade after there are obvious bullish or bearish signals.
Third, analyze the length of the decline time.
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.
Fourthly, analyze the long and narrow fluctuation range.
In the narrow trading range of crude oil, if the futures price of crude oil lasts for several weeks or months and the crude oil price breaks through the original bottom or top, it means that the general trend has changed to a great extent. Moreover, the longer the crude oil price stays in this narrow range, the greater the change after breaking through this range.