Summarizing 11 market rules and mindset principles for you, allowing you to better navigate the cryptocurrency market. Come take a look!
1. Trend Reversal Signal: When in a downtrend, if there are more than 3 consecutive bullish candles rebounding; in an uptrend, if the bearish candles do not exceed 3 consecutive bearish candles, this is a warning signal for a trend reversal.
2. Breakout Guide: In a fluctuating market, if the volume increases while the price remains stable, there will often be a significant breakout. You can enter when the price dips, waiting for two bullish volumes to exceed the previous bearish volume before making a move.
3. Holding Strategy: For strong coins, the holding strategy is simple; as long as the daily line does not break the upward moving average, hold firmly without worrying too much about technical indicators to avoid being affected by high-level stagnation.
4. K-Line Combination Interpretation: A medium bullish candle paired with two doji candles usually signifies a continuation in an uptrend, typical of strong coins' bullish patterns.
5. Market Anomalies: The market often proves that the majority's views are incorrect; confusing information released by major players and market tops often appear when everyone is optimistic.
6. KDJ Indicator Signal: If faced with continuous large bearish candles and the KDJ's J line is less than -12, it indicates that a short-term rebound is imminent. However, it is advised to wait for the rebound before making the next judgment.
7. Breakout Bullish Candle Characteristics: When breaking out upwards, a turnover rate of around 8% for bullish candles is considered a healthy attack volume; if the turnover rate is too high or too low, it may trigger a pullback.
8. Resilient Mindset: When trading is not going smoothly, it's essential to stay calm; only by enduring difficulties and pain can one welcome favorable changes.
9. Risk Control: Never operate with a full position; always leave yourself some room, as the market carries risks. Being cautious allows space for error correction.
10. Emotion Regulation: Maintain a proper mindset to view market fluctuations calmly and rationally; do not let emotions affect your decisions.
11. Learning and Communication: Don't isolate yourself; communicate and share with others. Even if your views are incorrect, that is part of growth; everyone progresses together.