5 Laws of Trading in the Cryptocurrency Market! Whether you are an experienced trader or a beginner, take a look to avoid detours!
1. Rapid rises and slow declines indicate accumulation.
A rapid rise followed by a slow decline suggests that the market makers are accumulating positions in preparation for the next round of increases.
2. Rapid declines and slow rises indicate distribution.
A rapid decline followed by a slow rise suggests that the market makers are gradually selling off, and the market is about to enter a downtrend!
3. Don't sell on high volume at the top; run if there's low volume at the top.
High trading volume at the top may indicate further increases; however, if the trading volume shrinks at the top, it suggests insufficient upward momentum, so exit as soon as possible.
4. Don't buy on high volume at the bottom; continuous volume increase is a buy signal.
High volume at the bottom may indicate a continuation of the downtrend, requiring observation; continuous volume increase indicates that funds are continually entering, which can be a buying opportunity.
5. Trading cryptocurrencies is trading emotions; consensus is reflected in trading volume.
Market sentiment determines cryptocurrency price fluctuations, while trading volume reflects market consensus and investor behavior! If you still don't know how to play, follow the homepage + Q to learn together!
The trends in the cryptocurrency market are filled with uncertainty and challenges, but they also contain potential opportunities. Investors participating in cryptocurrency investments should fully understand the associated risks, remain calm and rational, and adopt a prudent strategy to respond to market changes!