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Why is there a high probability that the market will continue to rise after the volume rises in the volume-price relationship?
Volume reduction represents consistency, a unified willingness to buy or sell.
Volume reduction indicates that the willingness of the big funds of the dealer to enter is strong.
However, is the big funds of the dealer entering just to push up the price and then sell immediately? What does the dealer make?
He must make money from the retail investors who follow the trend and chase the price, creating opportunities for retail investors to continue to invest funds to slowly raise the price. During this period, the dealer will also invest part of the funds to set off the high atmosphere and strengthen the determination of retail investors to chase high prices. When it reaches a certain height, it will gradually sell and leave it to various retail investors who cannot see the trend to take over.
So, this is the essential reason why the market is likely to rise after the volume rises.
However, here comes the point! The premise that the volume rises and can rise in the future is that the coin is in a new round of low-level start-up stage. If it is at the absolute end of shipment or the parabolic high point of the rising stage, the sudden rise with reduced volume is more likely to be a trap.
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