To be honest, the incremental window doesn’t wait. This run of price action with $LIT is kind of interesting. The other day, that single high-volume bullish candle directly broke the four-hour downtrend structure. Although there was a pullback in the short term, it was restrained in力度, and the volume didn’t show any signs of panic selling. This kind of movement—within my system—falls into the typical category of “turnover confirmation,” not the look of distribution. We need to take a longer-term perspective.
At this point, if it really is a stage bottom, then the chart structure must meet two conditions: first, the pullback can’t break the low of the K-line that initiated the move; second, when it attacks upward again, the volume needs to be gentler than the first wave—not a false breakout driven by an explosive surge that then quickly rolls over. As of now, the first condition has been held very steadily, and the second is still brewing. In plain terms, bulls and bears are constantly tugging at this level, but the overall weight is gradually shifting upward. This kind of structure is often more solid than a one-way, fast surge.
Some might ask: does this rebound mean it’s over here? I actually think that if it were truly a weak rebound, it should have seen a volume-heavy selloff already. But what I feel from the chart is that the selling pressure is running out. Our judgment can’t rely on just one or two K-lines; we have to look at the overall volume structure and how key levels are gained or lost. In this chart, the risk-reward is clearly tilted toward the long side. As long as the critical support doesn’t break, pullbacks are an opportunity for sidelined traders to re-enter and get their positions arranged. My bullish view remains unchanged, but don’t expect to eat it all in one bite—sideways-to-upward consolidation is the main theme of this move.
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#LIT
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