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What kind of volume-price relationship during a pullback period allows you to determine whether it is a good time to buy the dip just by looking at the trading volume?

The following volume-price relationships are typical, so remember them!

Basic concept: An increase in trading volume usually indicates that the divergence between bulls and bears is widening; conversely, a decrease in trading volume indicates that the divergence is narrowing, gradually tending towards consensus.

So, based on the above concepts, typical scenarios arise when you observe:

1. Daily trading volume continuously decreases day by day, indicating that the divergence between bulls and bears is gradually diminishing, tending towards agreement.

2. On the last day, the trading volume drops to a level similar to that before this wave started, indicating that excess divergence has been digested, returning to the trading volume that should exist at the starting point.

3. At the same time, the price of the currency shows a continuous downward trend, with daily declines being arbitrary, but it must close lower every day. Combined with points 1 and 2, it indicates that everything that can be bought has been bought, and everything that can be sold has been sold. The floating shares have been completely cleared, and there will be no trading behavior that can cause significant changes (declines) remaining.

Find cryptocurrencies that satisfy the above three points during the pullback period, close your eyes and wait for the surge.

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