View: If selling pressure weakens this week, it could serve as a reliable bottom signal
BlockBeats News, November 24th, Wealth management company Swissblock published a post stating that the current risk aversion signal has sharply declined, the selling pressure has eased somewhat, and the worst of the selling phase may have temporarily passed. If risk aversion sentiment is used as a bottoming alert indicator, then the next week will be crucial. Investors need to see the selling pressure continue to decline. Typically, the second wave of selling (weaker in intensity than the first wave, and the price holds above the previous low) will become one of the most reliable bottoming signals.
The second wave usually marks the exhaustion of sellers, and control returns to the bulls.
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