The main funds often use publicity to create a short-selling atmosphere, so investors should be extra careful when the market is constantly bearish, because it is under the heavy bombardment of all kinds of bad news that mainstream funds can easily open positions.
2. From the analysis of trading volume, the trading volume of the bear market trap is characterized by the fact that with the continuous decline of gold prices, the volume of energy is always in an irregular shrinking state, and sometimes there will even be infinite empty falls or infinite plunge on the disk, and intraday trading is also very inactive, creating an atmosphere for investors in the foreseeable future. It is in this pessimistic atmosphere that the main force can easily build positions on dips, thus forming bear trap.
3. From the macro-fundamental analysis
It is necessary to understand the policy factors and macro-fundamental factors that fundamentally affect the strength of the market, and analyze whether there are substantial negative factors. If there is no particularly substantial short-selling factor in the market policy background, the price of gold will continue to plummet, making it easier to form a bear trap.
4. Analyze from the technical form
The trend of bear trap's K-line is often manifested as a series of long yinxian plunging, which runs through various strong support levels, sometimes even accompanied by a downward gap, triggering a chain reaction of market panic. In terms of technical indicators, bear trap will lead to serious deviation of technical indicators, and it is not a deviation of one or two indicators, but often a synchronous deviation of multiple indicators for multiple periods.
5. Analyze from the aspect of market popularity
Due to the long-term decline of the market, many traps will be formed in the market, and the popularity will be exhausted in the quilt cover. But it is often at the moment when the market sentiment is extremely depressed, which just shows that the gold market is not far from the real bottom.