What does a latent bottom mean in an index fund?

What does a latent bottom mean in an index fund?

What does latent bottom mean? The stock price moves sideways in a very narrow range, the daily fluctuation of the stock price is very small, and the trading volume is also very sparse, forming a horizontal line-like shape on the chart, this pattern is called lurking end.
Morphological characteristics of the latent bottom:

  1. Usually latent bottoms appear in inactive stocks.
  2. Investors must follow up when there is a clear breakthrough at the long-term bottom.
  3. The breakthrough is characterized by a surge in trading volume and an increase in the daily high and low price fluctuations.
  4. On the way up after the breakout, high volume must be maintained.
  5. In the weekly and monthly charts, this pattern is still applicable, and has the same analytical significance as the daily chart, but the changes in volume are more difficult to discern.
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