Heavy Volume Limit Down Needle (Rebound Strategy After Panic Selling)

Logic:

When the price is rapidly driven down, a long lower shadow + high volume appears, but the closing price pulls back significantly, this indicates:

Large funds are instantly absorbing the sell-off

Panic selling has been cleansed at once

Strong demand below

Approach:

When a large bearish candle + long lower shadow appears (shadow length ≥ body 1 time)

When the transaction volume ≥ average volume 2 times

The next K stabilizes at the upper edge of the lower shadow → Go long

Stop-loss: Lowest point of the lower shadow

Significance: Panic release → Rebound strength is generally not small.