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Recognizing the true bottom is an essential lesson for every trader, and this stage is often where retail investors are most likely to fall into traps. However, with careful observation, price movements will reveal the intentions of the main force. The most direct and effective method of judgment is to confirm through the bottom consecutive yang (bullish) candle pattern—a strong K-line combination.
The consecutive yang golden pillar at the bottom is similar to the pattern after a limit-up, with the key difference being the specific position of the shakeout. Ultimately, both are techniques controlled by the main force.
**Stage One: Signal of Initiation**
A medium to large bullish candle appears at the bottom, with a rise usually exceeding 5%. Ideally, it hits the limit-up directly, and trading volume also expands, sometimes even doubling. This bullish candle must effectively break through important resistance levels, such as recent moving averages or the upper edge of the platform.
**Stage Two: Shakeout Confirmation**
In the following days, the price begins to consolidate sideways. Three consecutive bullish candles appear, but the daily gains during this phase are small. The key point is that the price does not fall below the highest point of that medium-large bullish candle. This indicates that the main force’s control is quite stable, and the entire sideways process is a shakeout by the main force.
**Stage Three: Volume Change**
During the consolidation, trading volume gradually diminishes, forming a descending step pattern. At this point, a typical price rise with decreasing volume pattern appears, reflecting that selling pressure has become very small. There are no signs of distribution by the main force, and the position is well locked.
**Stage Four: Trend Confirmation**
At this stage, the short-term moving averages show an upward slope, indicating a bullish trend.
**Stage Five: Breakthrough Initiation**
When volume expands again, it signals that the shakeout by the main force has concluded. From the volume pattern, a typical concave volume contraction is formed.
**Quick Memory Mnemonic: Volume must expand at initiation, consecutive yang candles don’t fall below the bottom, volume steps down, and confirmation is needed for breakout.**
This is how the bottom consecutive yang golden pillar pattern is thoroughly explained. It may not seem complicated; as long as you repeatedly ponder these key points, you will gradually develop a feel for it. This is the most basic content, and it must be understood thoroughly little by little.