Some superficial understanding of the buy and sell points during a leading stock's rebound

The essence of counter-movement is that when prices rise too much, they fall; when they fall too much, they rise.

Most of the targets for counter-movement are in a clear downtrend, like a person repeatedly vomiting until they reach the limit, and nothing more to vomit. What remains is only breathing and recovery. This is the simplest logic behind holding stocks during a counter-movement.

The best entry point for a leading stock’s counter-movement is hidden in the moment when the bears’ strength is exhausted. It is never an exact buy point but a vague range, which can only be secured through phased positioning and gradual averaging down. For beginners, heavy full positions are the most uncontrollable risk and can severely damage confidence in the pattern or individual stocks, leading to doubts and hesitation. Position management is the key skill in counter-movement, serving as a remedy and correction for the entry point.

When a new theme is hotly chased by funds and hits a new high, but then experiences continuous declines, it indicates that market sentiment has reached a freezing point. However, this freezing point must wait until the selling pressure is fully released before calmly entering. Targets with continuous declines and sufficient space are the safest in the counter-movement pattern. The market’s common saying “hold cash and wait for a market crash” is essentially based on the same logic.

The selling point of a counter-movement is like a brief flash of light in a downtrend, seeming to reverse but actually just a continuation of the decline. Regardless of profit, one should decisively exit and wait for the next cycle. Leading stocks’ counter-movement often ends with a limit-up as a signal to take profits. The deeper the previous decline, the greater the potential for rebound.

The more it rises, the more fiercely it falls;
the less it rises, the lighter the fall, and the weaker the counter-movement.

He is strong, let him be strong, and see him stand on the hill.
He falls, let him fall, and wait in cash for a big drop.
He is ruthless, so he falls on his own; with unlimited bullets and true energy.

Ultimately, trading is never about skillful gambling but about respecting human nature and cycles. All extreme declines hide the fear of rebirth; all fierce rebounds are temptations of the end.

The market is never an exception; everything is cyclical.