the basics of a set up:
market drops... it falls... settles... but no, breaks support keeps going... now oversold... but STILL dropping...
Then: we see a reversal candle... a first push... but it fails... drops back... but turns again -- this time making a higher low. now we see a base.
Next day: yep, there's a rally and it too falls back ... marking 3rd higher low where it bases..... and NOW: NOW -- on the next push we often see a sustained rally, if not multi-day to top of channel and maybe beyond as sentiment shifts. <--- goal is to enter around this area and not participate in the consolidation phase.