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:
- Usually latent bottoms appear in inactive stocks.
- Investors must follow up when there is a clear breakthrough at the long-term bottom.
- The breakthrough is characterized by a surge in trading volume and an increase in the daily high and low price fluctuations.
- On the way up after the breakout, high volume must be maintained.
- 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.