Recently, while watching the charts, I saw the arc bottom pattern again and remembered that this pattern is actually a bottoming signal that many people tend to overlook.

The arc bottom, simply put, is a typical representation of a weak market trend, looking like a pot bottom on the candlestick chart. In the later stages of decline, the price's downward speed gradually slows down, and then it begins to oscillate repeatedly at low levels. The most critical part of this process is the change in trading volume, which first gradually shrinks and then slowly expands; this rhythm is very important.

I found that the most valuable aspect of the arc bottom pattern is that it provides us with a clear reference for a buying point. When the price effectively breaks above the neckline, that is the first buy point, which is a relatively aggressive entry. If you want to be more cautious, you can wait for the price to break above the neckline and then do a first retest, which is the second buy point. The third buy point is when the price confirms support and then rises again to break through the nearby previous high.

Here's a very practical tip: the longer the arc bottom formation takes, the greater the subsequent upward movement tends to be. My personal trading habit is to pay more attention when I see volume and price start to change in sync, especially when accompanied by increasing volume on bullish candles and decreasing volume on bearish candles. Because usually, after a period of sideways movement, a breakout and rally occur, indicating that the main force has completed their shakeout and accumulation, and the future rally can be quite substantial.

But it’s important to note that during the formation of the arc bottom, both bulls and bears are reluctant to participate, and trading volume is extremely low. The price appears very dull, and this period can be very long. So, don’t jump in too early; it’s better to wait until the volume breaks above the neckline before buying, which will give you more confidence.

In summary, the arc bottom pattern is a bottom reversal signal worth paying attention to. As long as you can patiently wait and seize the key buying points, the probability of a future rise is very high. Of course, investing involves risks, and these observations are based on technical analysis; actual trading should still be based on your own risk tolerance.