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In recent times, the scenario of bottoming out and rebounding has occurred multiple times.

It's not just the index, but individual stocks have also seen many instances of falling in the morning and rising in the afternoon.

There are also some T+0 enthusiasts who frankly say that the current market is a "money-sending" trend.

Continuous lower shadow lines, are they a sign of a short-term bottom, unable to fall further, or are they a test of the downward trend?

This also needs to be looked at from several aspects.

First, understand how the lower shadow line comes about.

The lower shadow line in the K-line refers to the price difference between the lowest point and the closing price.

It is also commonly referred to as bottoming out and rebounding.

The reason for the bottoming out and rebounding situation must be that funds have bought at the bottom position, "bottom-fishing."

But this behavior is not necessarily a long-term action, it may just be a short-term game.Or, to put it another way, capital has its own intentions, hence the occurrence of a price lift.

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There are two relatively common scenarios.

The first scenario is testing the market.

Testing the market downward.

Testing the market does not necessarily mean breaking downward; it can also be a simple probe to see how much panic selling there is.

The main reason for testing the market is to gauge how many shares would come out and how much capital would come in if the price is suppressed.

That is, to see the strength of the buying support, to determine how much there is.

Some major players, in order to get low-priced shares, will deliberately suppress the stock price without wanting to consume too many of their own shares, so they will test the market.

If the market test reveals that there are many willing buyers below, far more than expected, they will then lift the price accordingly, forming a lower shadow line.

There are also some major players who want to sell out but are unsure if there are buyers, and they will also suppress the stock price downward.If there is a particularly low volume of support orders below, even if the price is driven down, there will be no one to take up the positions, which will naturally lead to a rebound.

Since the suppression cannot sell the chips, it is better to slow down first and observe the market's reaction and changes to see if there is a way to attract followers again.

The situation of testing the market is actually very common, so the lower shadow line naturally occurs frequently.

However, if there are continuous lower shadow lines, the possibility of repeated testing is actually quite small, and special attention should be paid.

The second situation is washing the market.

The lower shadow line is a sign of market washing, but it is not a clear signal.

Because the truly violent market washing is mostly directly closed with a huge negative line.

The main force does not need to pull up the price in advance, it is better to let the stock price fall, and wash it clean enough.

But there is also a part, if the trading volume is relatively large, the game is over in the market, and the main force will pull up the stock price.

Pulling up the stock price can ensure that the purchase on the same day is profitable, which is more beneficial to the main force's cost.The tactic of using lower shadow lines for washing the market was once very common, but now it is becoming increasingly rare.

Especially when there is a consecutive appearance of lower shadow lines, the probability of market washing is very low.

Because at the same position, repeatedly hitting down, for those who want to sell, the mentality is almost the same, and it is unlikely to have repeated buying and selling tension, so the washing effect is not very good.

Therefore, if there is one or two lower shadow lines, and the stock price is pulled up and goes up, it is market washing.

If the lower shadow lines appear repeatedly, it is highly likely that it will go down, similar to the downward pointing of a fairy, which is not a sign of market washing.

The appearance of lower shadow lines can be said to be a mixed blessing, but in essence, it will not change the original direction and trend.

However, the continuous appearance of lower shadow lines means that there will definitely be a change in the market.

From the actual situation, the trend of continuous lower shadow lines is basically more bad than good.

The market that keeps trying down, even if it is not falling at the moment, is highly likely to go down.

Just like many people say, if you buy a little more every day when it falls a lot, there will be a premium at the close, and it seems that you can make money every day.This situation is not likely to continue.

When the chips at the bottom start to vacuum and fall, the support orders begin to falter, and the market is prone to collapse.

Even if the stock price has already reached a very low position, if there are still continuous lower shadows, it is likely that it has not yet hit the bottom.

Lower shadow washing often only occurs once, at most twice, and it becomes ineffective if it happens more often.

If the index has a lot of lower shadows, does it mean that the index is going to reverse in the short term?

The biggest difference between the index and individual stocks is that the index is formed by the collective effort of capital.

Individual stocks are the patterns made by the main controlling capital.

So, if the index has lower shadows every day, the situation will be different.

During the decline, if there is a lower shadow, it represents the entry of bullish capital.You will find that in the early stages of a decline, the index tends to show more instances of bearish candlesticks without lower shadows ("barefoot" lines).

This is a time when short positions are venting, with significant capital outflows creating a united force of selling pressure.

Bullish investors are not willing to easily bottom-fish, so there is essentially no presence of lower shadows in the candlesticks.

After a period of decline, when the index reaches a relatively low position, there are funds that start to re-enter the market.

The lower shadow is a game of chess between the main forces of capital, but it is most likely a differentiation between sectors.

The appearance of a lower shadow in the index's decline indicates that there are opportunities emerging in certain areas of the market.

A bearish candlestick without a lower shadow represents a market-wide massacre.

While a lower shadow indicates that there are some hot sectors and stocks driving the entire index upwards.

The index may not rebound immediately, but it signifies that at this position, capital is willing to enter the market.

If there are consecutive lower shadows, it represents that capital is rotating within different sectors.At this moment, what needs to be done is to identify this sector and actively participate in it.

But if this sector loses momentum, then it is highly likely that the index will continue to decline.

This is the subtlety of the index's lower shadow line, which is completely different from the lower shadow line of individual stocks.

The index continuously showing lower shadow lines also indicates that this area may be about to form a bottom, but it is only a possibility.

The continuous lower shadow lines of the index represent the beginning of capital entering the market.

But this does not mean that the price will rise immediately, as it can continue to dig a pit.

After a series of lower shadow line probes in the bottom area, if the index does not take action to attack upwards, then it is time to dig a pit.

After cleaning a relatively low position of the chips, digging a pit downwards can create panic, further absorb the chips, and the cost of the chips is lower.

All games, in the end, are just a game.

The upper shadow line and the lower shadow line are just the results of the chip game that we see.The game of indices is different from the game of individual stocks because there is no absolute control over indices.

The game of individual stocks is merely an action targeting a specific stock.

However, the game of indices can involve internal rotation within the index, which is the key point of structured gaming.

Many times, when we see the rise and fall of indices, it is actually because some sectors continue to sell off while others have already emerged as a new force.

The structured market situation, which triggers the lower shadow line, should be correctly understood.

You can choose to rest and not participate; continuous lower shadow lines definitely have not reached the bottom, but if you want to "bottom fish," you must choose the strong direction where funds gather.

There is not so much mystery in the lower shadow line; it is a normal result of the game and should be correctly understood.