How to cleverly use support levels in cryptocurrency trading?
(1) In an upward trend, during a pullback, if the bearish candlestick is weaker than the previous bullish candlestick, especially when close to the support price level, and the trading volume shrinks, followed by a bullish candlestick that quickly engulfs the bearish candlestick, the coin price will rise again, indicating effective support.
(2) In an upward trend, during a pullback, if bearish candlesticks frequently appear, indicating increased bearish pressure, even if there is a slight rebound near the support line, the buying force is weak, and the coin price will eventually break below the support line, which is referred to as a market reversal.
(3) When consolidation forms near the support line, after a period of consolidation, if a long bullish candlestick appears, the support line is naturally effective.
(4) When consolidation forms near the support line, but a long bearish candlestick slides below the support line, investors rush to exit to minimize losses, and the coin price will continue to drop for a while.
(5) When the coin price breaks below the support line, it indicates that the market will shift from an upward trend to a downward trend. Generally, in a strong upward trend, if a medium-term downward trend appears and the market breaks below the support line of the medium-term downward trend, it indicates that the upward trend has ended; in a medium-term upward trend, if a minor downward trend appears and the market breaks below the support line of the minor downward trend, it indicates that the medium-term upward trend has ended, and the coin price will continue to decline according to the original downward trend.
(6) If the coin price approaches the support line from above but fails to reach or just touches the support level before rebounding, and there is a high trading volume accompanying it, then when another downward adjustment occurs, one can buy in to capture rebound profits.
(7) If the price breaks below the support line from above, and there is a high trading volume accompanying it, it indicates that another downward trend is forming. If there is a slight pullback, one should sell to avoid greater losses.
(8) If the coin price approaches the support line from above but does not break below it, and there is no accompanying trading volume, it indicates that there is no potential for a rebound, and one should exit the market as soon as possible.#山寨币走势展望