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. All false price changes often appear in the late stage of bull market or bear market, and investors should trade after there is a clear bullish or bearish signal.

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 the big market has passed for a period of time (that is, it has reached the depression stage), the depression stage has declined for a long time before, and then the general trend often begins to change.