$Cleveland Cliffs(CLF.US) The bottom is a product of sentiment, not the result of calculation. A "reasonable price" is calculated—DCF, PB, PE, historical percentile. But all of these become invalid the moment the bottom forms. You calculate CLF's PB of 0.92 as "cheap," but the market says, "Not cheap enough, it needs to be even lower than the reasonable price, and there must be divergence—for example, a triple overlay of RSI 14.5, no steel price quotes, and insider selling."

How do you know it's the bottom? You don't. You're just one of the nervous bulls. If you were very certain, very comfortable, and saw a bunch of people buying with you at that time, then it wasn't the bottom. The real bottom is lonely.