This market is very interesting. From my observations, the sentiment in the circle is extremely pessimistic. Let's chat about the trading logic behind the trend divergence.

In the trend movement, there are two central points. Central point A is used for unloading. Since the price cannot drop too quickly, the main force usually unloads while protecting the market. When it reaches the final unloading stage, there is no need for protection, and they will clear it all at once, creating a downward departure segment. This will also cause trend traders like me to follow, thus forming a collective force, often leading to a non-divergent departure. At this stage, ordinary retail investors are unresponsive because the speed is too fast, and many people lack the technical identification ability, still caught up in the FOMO emotion at the top. Instead, they tend to buy more as the price drops, which is the phenomenon of "constantly bottom-fishing halfway up the mountain."

After a phase of stabilizing, the main force will choose the right moment to enter, testing the release of selling pressure. The method of testing is to intervene with a small amount of buying to see if it can push up. This is why, on the bottom trading floor, there are often spike lines during the testing phase. In the bottom range, those who were previously trapped will panic extremely, wanting to sell at any rebound, while the main force will periodically pull up the price, actively allowing you to break even and hand over your chips. The market performance shows that a B center is created to facilitate the turnover of chips. A good main force will ensure that the concentration of circulating chips exceeds 50%, while more ruthless operators, like the first generation of A-share operators Li Biao, can wash the concentration of chips to as high as 90%. Such individuals are top-tier operators with extremely strong techniques. In the B center, besides the operators, there will be a small number of retail investors buying based on support. Therefore, at the end of the consolidation, the main force will make one last push down. Due to the continuous decline before, it is difficult to form a bottom support. Once it breaks through, it serves two purposes: to create complete panic and to force those who entered midway to hand over their chips, allowing trend traders like myself to short the market, and then the market collapses. This final push down is not meant to really break down but to create a short trap. If it truly breaks through, it means breaking its own cost price, which is illogical in operations.

As the market reaches this point, there is extreme panic, and everyone is very pessimistic, with various news about jumping off buildings and liquidation circulating. However, the turning point in the market appears. Due to the high concentration of chips, the trend will rebound at a very small level without giving you time to react, quickly moving away from the lower bearish zone and running upwards. At this time, those who have liquidated their positions have no chips, and those who have cut their losses also have no chips, and can only wait for the distribution at the top to take over at high levels.

This is probably a complete trend movement; the scenarios are different, but the logic is similar. It's purely a topic for casual conversation, unrelated to trading. It is purely the logic behind the movement that helps you better understand the psychological state of different market participants, what choices they might make under certain circumstances, and what kind of trends that could lead to.
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