Remember the iron law of currency speculation?
Rapid rise and slow fall, signs of accumulation are obvious. After the stock price or currency price rises rapidly, the rate of decline slows down significantly. This is often because the main funds are actively absorbing chips to prepare for the subsequent rise.
It fell sharply and rose slowly, indicating a strong signal for shipment. When prices experience a rapid decline and then rebound weakly, this usually indicates that the main funds are gradually withdrawing and the market may enter a downward channel.
If you increase the volume at the top, hold it with caution, and if the volume shrinks, withdraw immediately. When the price is high, if the trading volume is significantly enlarged, it may mean that the market is still divided but the power of multiple parties still exists. However, once the trading volume begins to shrink, it indicates that the upward momentum has weakened, and you should promptly consider reducing your position or leaving the market.
The initial volume at the bottom should be observed, and the continued volume can be entered. When the bottom area begins to increase in volume, you need to carefully judge whether it is a relay of the decline and further observation is required; however, if the trading volume continues to increase, it indicates that funds continue to flow in, and the market bottom may have been established, and timely intervention may be considered.