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1. Market sentiment and emotions can be analyzed from changes in trading volume and open interest to understand the strength of bulls and bears. If there is significant volume but the price does not fall, it may stop falling; if there is significant volume but the price cannot rise, it may be reaching a peak in the short term. The volume requirements during upward and downward processes are different.
Upward process: continuous and uniform volume is needed. Uniform volume in a 3-minute candlestick chart indicates the upward trend will continue. If there is a significant reduction in volume or a very large volume appears, the upward trend may come to an end.
Downward process: as long as there is a significant volume when breaking through some key positions, the downward trend will continue. When the price rises to a certain level and stops rising, but positions keep increasing, and the buy and sell orders are getting lower, it indicates the price may fall. Increasing positions with stagnation in rising is a very good shorting opportunity, or increasing positions with stagnation in falling is likely to rebound.