$BAN Hello everyone, I am Index Explosion, today I will talk about what I often refer to as stage (two) top/bottom.
Without further ado, let's get started. To make it easier to understand, let's take the newly launched contract coin as an example. We can see that BAN launched the contract at 7:30 PM, quickly dropped and then rebounded to the stage high of 0.3475, after which it oscillated down to stabilize at 11:45, constantly oscillating between 0.27 and 0.31, but never breaking the position of 11.45 at 0.2707.
It continued until the next morning at 8:30, when it began to oscillate upward, but quickly broke through, with a small spike at 11:15 reaching 0.3406, very close to the previous high of 0.3475, and then started to oscillate downward all the way.
It can be seen that BAN did not break or surpass the bottom oscillation and the upward pull, the corresponding positions are what we call the stage top and bottom, which can be subdivided into two-stage tops and bottoms. Of course, this is just a relatively simple situation; many times the stage top and bottom can also be broken, as the stage top and bottom are divided into 15 minutes, one hour, or even daily levels, and they repeat continuously, which needs to be analyzed according to the situation.
In short, it is best not to enter the market on the first day of a newly launched contract coin, as there are often spikes and oscillations. You can wait until the next day when it shows the corresponding two-stage top or bottom to enter the market. The same applies in other periods; you need to see trend signals before entering the market, which is much safer.