5 Laws of Bull Market Trading for Cryptocurrencies to Share with Everyone. Take note!!!
1. Fast rises and slow declines indicate accumulation
Rapid increases but slow declines suggest that the market makers are accumulating positions in preparation for the next round of increases.
2. Fast declines and slow rises indicate distribution
Rapid declines but slow increases imply that the market makers are gradually selling off, and the market is about to enter a downward cycle.
3. Don’t sell on high volume at the top; run away if there’s low volume at the top
High trading volume at the top may indicate further increases; however, if trading volume at the top diminishes, it suggests insufficient upward momentum, so it’s best to exit quickly.
4. Don’t buy on high volume at the bottom; consistent high volume can be a buy signal
High volume at the bottom may indicate a downward continuation, which requires observation; consistent high volume suggests ongoing capital inflow, making it a potential buy opportunity.
5. Trading cryptocurrencies is about trading emotions; consensus is represented by trading volume
Market sentiment determines price fluctuations of cryptocurrencies, while trading volume reflects market consensus and investor behavior.