1. Rapid increases and slow decreases indicate accumulation of shares. A quick rise but a slow fall suggests that the major players are accumulating shares, preparing for the next round of increases.
2. Rapid decreases and slow increases indicate distribution of shares. A quick drop followed by a slow rise means that the major players are gradually selling off, and the market is about to enter a downward cycle.
3. Don't sell when there's high volume at the top, but run quickly when there's low volume at the top. High trading volume at the top may signal further increases; however, if trading volume at the top shrinks, it indicates insufficient upward momentum, so exit quickly.
4. Don't buy when there's high volume at the bottom; continuous high volume can indicate a buying opportunity. High volume at the bottom may signify a continuation of the downward trend, so it needs observation; continuous high volume indicates that funds are continually entering, which can be a buying consideration.
5. Speculating on cryptocurrencies is about trading sentiments; consensus is reflected in trading volume. Market sentiment determines price fluctuations, and trading volume reflects market consensus and investor behavior!