1. From the perspective of quantity, whether the quantity is sufficient. If it is a reversal, when the market bottoms out and breaks upward, the volume of transactions will be multiplied and a huge amount will be released continuously. The amount at this time should be close to or exceed the amount at the top of the last wave of market. The larger and more abundant the energy is when it breaks through from the bottom upwards, the greater the possibility of inversion. The rebound is small, even if a huge amount is released, it can't be released continuously, and it can't maintain the amount of energy, indicating that the bulls are short of follow-up energy.
2. From the source of funds, whether there are a lot of new funds entering the market. The main sign is whether there are new investors entering the market. In the reverse market, the ranks of investors are constantly expanding, a large number of off-exchange funds enter the market, and there are powerful new forces behind the bulls. In the rebound market, there are not many new investors, and the market is mainly maintained by the deposited funds in the market.
3. From the main hype concept, whether it is innovative. In the reverse market, the market will form a brand-new investment concept, and at the same time there will be some brand-new themes and concepts. In the rebound market, there is a lack of new ideas and new thinking. When rebounding, the market is just repeating some old themes and concepts in the past.
4. From a technical point of view, whether the short, medium and long-term moving averages form a long arrangement. In the reverse market, the short-term moving average of the market rose strongly, followed by the medium-term moving average, and the long-term moving average began to hang upside down. The short-term moving average effectively crosses the long-term moving average, forming a golden cross, and the overall market moving average system forms a long arrangement. In the rebound market, although the short-and medium-term moving averages turn their heads upwards, the long-term moving averages still run downwards at a certain speed, and the short-and medium-term moving averages cannot effectively cross the long-term moving averages. The rebound market is generally blocked at the long-term moving average, the trading volume shrinks, and the stock index cannot effectively break through the long-term moving average.
5. It depends on whether the bottom structure is enough. After the market fell sharply, the trading volume was depressed for a long time and the stock price fell. The market is numb to both good and bad. Under the blow of many bad times, it bottomed out several times, but the downward momentum was obviously insufficient, and it was impossible to hit a new low. The bottom shape is obvious, which is the first condition of inversion. The rebound is a technical supplement to the downward trend, and the bottom structure of the rebound is insufficient.
6. From a fundamental point of view, is there an environment to support the big bull market? Against the market, the fundamentals will change fundamentally, and various factors support the stock market to go bullish. In the rebound market, the fundamentals have not changed fundamentally, and even the fundamentals continue to deteriorate.
7. From the perspective of the leading plate, whether there is a multi-head rise in the market. The reverse market must have a leading plate that can be recognized by the market and stimulate popularity. In the reverse market, a large number of heavyweights hit a new high, and the popularity of high-priced stocks can play a demonstration role, which will raise the overall price center of the market and completely open up the room for growth. The hot spots in the market are continuous and last for a long time. In the rebound market, the hot spots are chaotic and discontinuous, lacking the popular leading plate, and the market belongs to the oversold rebound nature.