Here are four practical tips for buying the bottom and escaping the top of hot coins!

Tip 1: Identify the signal of inducing more

When a variety enters the sideways consolidation stage after continuously setting new highs, and then tries to rush up many times but the amplitude is not large and falls back many times, this is likely to be a signal of inducing more. At this time, you should be particularly vigilant and avoid blindly chasing highs.

Tip 2: Wait for the bottom confirmation

When the currency price fluctuates sideways at a low level, do not intervene easily. After the currency price hits a new low, if you can quickly recover all the K lines in the falling area and form a bottom divergence, this is a good time to buy the bottom.

Tip 3: Capture the opportunity to step back after the breakthrough

If a variety is sideways at the bottom for a long time, and then breaks through the sideways range for a few days, and then falls back and falls below the previous sideways range, then when it starts again later, it is likely to usher in a larger wave of pull-ups.

Tip 4: Pay attention to changes in trading volume

In an upward trend, the currency price falls slightly and the trading volume shrinks, and it is likely to continue to rise. But if it continues to set new highs but the volume is shrinking, then be careful, this may be a signal of reaching the top.

These four tips can help you better identify market trends and make smarter investment decisions. Remember, investing is risky, so be careful!

If you want to learn more about the cryptocurrency world and get first-hand information, click on the avatar to follow Sponge, which publishes market analysis and recommends high-quality potential currencies every day.