Attention! The last time the market saw a massive bearish candle, retail investors were often quite scared. However, this pattern actually has two logics: one is a washout type of massive bearish candle, and the other is a distribution type of massive bearish candle. They do not occur in the same position. Today, I will share with you what a washout type of massive bearish candle pattern is.

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1. The stock price has already experienced a long period of decline, and the trading volume is very low.

2. The stock price suddenly shows a massive bearish candle, and the trading volume is more than three times that of the past, with a drop greater than 3%. This is actually a method used by the main force to deliberately suppress the stock price for a washout.

3. Subsequently, the stock price begins to consolidate, and the trading volume starts to decrease significantly during the entire consolidation, reaching a low volume that is one-third of the massive volume.

4. The lowest price of the massive bearish candle is actually a key position; we can draw a horizontal line. When the stock price breaks through this horizontal line, it indicates that the main force has finished the washout.

There are three details to note:

1. A massive bearish candle can have a lower shadow; the longer the shadow, the stronger the main force's buying effort.

2. A washout type massive bearish candle generally appears at the beginning of an upward trend or at the end of a downward trend when the main force has not yet objectively realized profits.

3. A distribution type massive bearish candle often appears at the end of an upward trend when the main force has already experienced significant gains.

Below, I have prepared case diagrams; I believe novices can easily understand them. I hope this is enlightening and helpful for everyone. This is also the most fundamental content, so be sure to grasp it thoroughly. See you in the next content.