Essentials! Practical Guidelines for Cryptocurrency Trading You Must Remember! (Save and Share)
1. Bottom Finding Rule: A shrinking volume signals a bottom; the extreme point is at a new low. In a sluggish market, good conditions can wash the plate, and seizing the extreme point brings good luck.
2. Top Escaping Rule: New volume and new price indicate a new high; no need to escape during a volume pullback. A massive volume should raise caution; if there is price but no volume, you must run.
3. Short Selling Rule: Short selling requires bad news; the market is sluggish, and good conditions can wash the plate. If new lows come in succession, low volume indicates the extreme of negativity.
4. Bottom Picking Rule: When there is a volume decline, reduce your position; a shrinking new low indicates a bottom pattern. The key is an increasing volume recovery; confirm and enter when it turns back.
5. Stop Loss Rule: Initially expecting the coin price to rise, unexpectedly it moves in the opposite direction. Clearly recognize the situation and intent; it’s not about stopping losses but adding positions.
6. Mentality Rule: Trading cryptocurrency is about mentality; greed and fear are major harms. Be cautious about chasing highs and cutting losses; remain calm and relaxed.
7. Operator Rule: You are in the light while the operator is in the dark; only looking at the surface will lead to being calculated. Bears and bulls are traps; observe names and interpret in reverse.
8. Selling Rule: To sell, there must be good market sentiment; positive news is followed by expectations. Cooling off and selling hot is the premise; excessive volume and stagnant rises signal the end of the trend.
9. Plate Washing Rule: A massive new high raises doubts; a volume decline signals the end of confidence. When there's no one following the shrinking upward trend, creating a new high washes the plate.
10. Trend Rule: Look at trends for entering and exiting; the volume and price must be understood in context. While everyone chases, I remain awake; in a sluggish market, prepare to pick up.
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