1. Rapid rises and slow declines indicate accumulation. A quick surge followed by a gradual pullback suggests that the market maker is accumulating shares in preparation for the next upward movement.
2. Rapid declines and slow rises indicate distribution. A sharp drop followed by a slow increase indicates that the market maker is gradually selling off, and the market may enter a downtrend.
3. Don't panic sell at high volume tops, exit quickly at low volume. High volume at the top suggests there may still be upward momentum; if volume at the top decreases and the upward momentum weakens, it's time to exit quickly.
4. Don't act impulsively at the initial volume increase at the bottom, wait for sustained volume before re-entering. Initial volume at the bottom may just be a continuation of the downtrend, so further observation is needed; sustained volume indicates continued inflow of capital, at which point buying can be considered.
5. Trading cryptocurrencies is about emotions; consensus is reflected in trading volume. Market sentiment drives the fluctuations in cryptocurrency prices, while trading volume reflects market consensus and investor trends!